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Tips on investing during a recession

Everybody else is trying not to spend. You don't mind spending as long as you get a return. To be at your best, all of the time, you need to do exactly the opposite of what most people will be doing: you need to invest.

BE CONTRARY

It's really tempting to take away, to strip down, but believe me you need invest. Keep the marketing and training budgets. Just spend them a lot more wisely. You must invest for 2009. Here's how.

1. Invest

It is very tempting to not invest in tough times, to cancel the technology upgrade, as well as all the newspapers, to run the stationery cupboard to empty, to manage only buying clients and forget the others, to overwork. But it just doesn't work. Markets will catch up with you and you will be under-prepared to respond to recovery, you will have a demotivated workforce and you will be missing opportunities. Of course you need to stop waste and buy more carefully. You could also try some just in time delivery practice and cut off non-essential training as long as you also make the necessary investments. Your business will die otherwise.

2. Invest in people 1: well-being

Ensure people feel at their best doing their jobs. Boost their well-being. They don't need pampering, but they may need air conditioning. They don't need spoiling but maybe they do need a serviceable office chair. Sort out the basics, also known as hygiene factors.

3. Invest in people 2: development

The training budget may well be slashed, but that doesn't stop development. Create a learning library and stock it with books purchased with some of your saved training budget. Ask people to share useful ideas from their reading at the team meeting. Get a few audiobooks for people to listen to in the car on the way to meetings. Remind your team leaders how to coach, and do some coaching yourself. Trained people work better. Better work equals more profit.

4. Invest in people 3: motivation

Ensure reviews continue, even if pay discussions are on hold. There is still plenty to talk about: How are they getting on? Where do they want to take their careers? What challenges do they have in their job? What would they like from the company? What would the company like from them? Detail actions, write it up and implement the results.

5. Invest in key equipment

Don't wait until it falls apart. Why lose the business simply because you can't create a quality proposal as your colour printer is down and nobody renewed the maintenance contract. You know the sort of thing.

6. Invest in technology, especially systems

Technology is getting cheaper and cleverer and it means you can make do with fewer people. Give it loads of attention, buy carefully and consider how investment in technology could help you through this recession. You should be offered some good deals too, as nobody else is buying.

7. Invest in your channels

Never assume that you are going to get business even from people you feel have no choice but to buy from you. Thank them for their business and give them appropriate attention. Be aware of taking your eye off the ball and spending too much time as 'hunter' and not enough time as 'farmer'. Keep considering other channels. If you have traditionally been direct, could it work to try the indirect route? If you normally sell only through the internet, could it work to have a store somewhere?

8. Invest in your suppliers

There are a few of your current suppliers that you would be in a mess without. Stay close, meet with them and return their calls. If there are going to be payment problems, keep them informed.

9. Invest in your clients

Raise your standards. You are confident that they think you are good. But what would it take for them to think you are brilliant? What would it take to make the product so good that price sensitivity would drop away? That's the kind of thinking and investment in the client that needs to be done.

10. Invest in your image

The web site needs an update, the e-newsletter is dreary and the local paper never talks about you because you 'fell out' with the editor. Time to change. Find some cheap but good web designer to create a simple but elegant site. Scrap the newsletter. Ring up the paper and grovel if you have to.


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