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Thinking Fast in Slow Times | In the news | My Website
Thinking Fast in Slow Times
23/03/09 08:55 Filed in: In the news
Medford Business Review
By David Graham
As a new arrival within the downtown Medford district, we have found ourselves caught in the waves of an economic tsunami that no one saw coming. Indeed, many of our compatriots within our industry and most of the surrounding neighbors, landlords and vendors face the same circumstances and are in the same boat-one seemingly without a paddle.
However…
All is not lost, and if I might stretch the analogy a bit, if we fashion a paddle out of the resources at hand, and all pull as one, we can weather this tidal wave of bad news. Here’s how… Thinking fast. Now that we have eliminated any doubt that our economic downturn is real and likely long lasting, the fi rst thing is to move faster than the known realities of a recession. For us, this meant quickly building communications with our vendors, landlord and others to help them understand our realities and how we plan to address them. We see that during the short-term we will need assurances that they understand our cash fl ow and budget issues – that they will give us the fl exibility to cover our costs and we can give assurance that we in turn will be prompt in our changed payment schedules.
The idea is to acknowledge that we are in the same boat, and that we need to survive for each of them to benefit from our success in the future.
We keep our vendors aware of our status, and find ways to solve our joint problems-be it barter, cost reductions, extended terms, or some combination.
For us, this meant showing our vendors how much we spend with them each month, and then offering some options that help us both-whether this was a one-time allowance to help us control cost, or an agreement to create an event with them where they promote us to their own customer base, the idea is to be proactive and ahead of the curve.
Concurrent with this outreach, we actively pursue marketing avenues that oft en go overlooked. Cooperative ideas with our counterparts in the area (creative ways to bring reluctant customers downtown – “feet on the street” brings opportunity to all); utilization of organizations such as Heart of Medford, Visitors and Convention Bureau, and of course Th e Chamber--every one of these are valuable in any time but priceless in slowdowns; and grabbing hold of new media outlets in creative and dynamic ways. It is absolutely true that creating a “buzz” about your business will drive the curious in and give validation to the loyal customer.
We have moved quickly into the virtual realm of Facebook, Twitter and rebranding our web presence. Not only is this extraordinarily cost effective (i.e., free!) but very dynamic; Facebook allows you an interface with your customers in a way that is dramatically different from traditional advertising. Facebook allows people to see you as they might have back when the barrel of nails was the table and the potbelly stove had a kettle of coffee on it. It is a neighborhood where chat and casual conversation can lead to a loyal customer or new client. Twitter is still new in this area (a far more urban phenomena, Twitter is catching on with the trendsetters as they use it as a truncated Facebook), but it holds potential to keep your business upfront and center in a (mostly) unobtrusive way.
Thinking faster than the slowdown is most of all not succumbing to the indecision and uncertainty. We know what a recession holds: 3-18 months of downturn, loss of revenue, reductions in labor, output, and margins, credit tightening and greater loan restrictions.
We know too, that the cycle turns. We are all in this boat, and there are few who are untouched or unscathed. Acknowledge this, understand the dynamics, do not let down your optimism and think faster, for in these times it is not your competitor that will take you down, it is not recognizing just how big a boat we are in, and just how many of us are on it. Grab the paddle. It is time to row.
David Graham is a managing partner with Michael Kim Wolf of Food 4 Thought, LLC which operates 38 Central in downtown Medford. He can be reached: david@38central.net or at his restaurant.
By David Graham
As a new arrival within the downtown Medford district, we have found ourselves caught in the waves of an economic tsunami that no one saw coming. Indeed, many of our compatriots within our industry and most of the surrounding neighbors, landlords and vendors face the same circumstances and are in the same boat-one seemingly without a paddle.
However…
All is not lost, and if I might stretch the analogy a bit, if we fashion a paddle out of the resources at hand, and all pull as one, we can weather this tidal wave of bad news. Here’s how… Thinking fast. Now that we have eliminated any doubt that our economic downturn is real and likely long lasting, the fi rst thing is to move faster than the known realities of a recession. For us, this meant quickly building communications with our vendors, landlord and others to help them understand our realities and how we plan to address them. We see that during the short-term we will need assurances that they understand our cash fl ow and budget issues – that they will give us the fl exibility to cover our costs and we can give assurance that we in turn will be prompt in our changed payment schedules.
The idea is to acknowledge that we are in the same boat, and that we need to survive for each of them to benefit from our success in the future.
We keep our vendors aware of our status, and find ways to solve our joint problems-be it barter, cost reductions, extended terms, or some combination.
For us, this meant showing our vendors how much we spend with them each month, and then offering some options that help us both-whether this was a one-time allowance to help us control cost, or an agreement to create an event with them where they promote us to their own customer base, the idea is to be proactive and ahead of the curve.
Concurrent with this outreach, we actively pursue marketing avenues that oft en go overlooked. Cooperative ideas with our counterparts in the area (creative ways to bring reluctant customers downtown – “feet on the street” brings opportunity to all); utilization of organizations such as Heart of Medford, Visitors and Convention Bureau, and of course Th e Chamber--every one of these are valuable in any time but priceless in slowdowns; and grabbing hold of new media outlets in creative and dynamic ways. It is absolutely true that creating a “buzz” about your business will drive the curious in and give validation to the loyal customer.
We have moved quickly into the virtual realm of Facebook, Twitter and rebranding our web presence. Not only is this extraordinarily cost effective (i.e., free!) but very dynamic; Facebook allows you an interface with your customers in a way that is dramatically different from traditional advertising. Facebook allows people to see you as they might have back when the barrel of nails was the table and the potbelly stove had a kettle of coffee on it. It is a neighborhood where chat and casual conversation can lead to a loyal customer or new client. Twitter is still new in this area (a far more urban phenomena, Twitter is catching on with the trendsetters as they use it as a truncated Facebook), but it holds potential to keep your business upfront and center in a (mostly) unobtrusive way.
Thinking faster than the slowdown is most of all not succumbing to the indecision and uncertainty. We know what a recession holds: 3-18 months of downturn, loss of revenue, reductions in labor, output, and margins, credit tightening and greater loan restrictions.
We know too, that the cycle turns. We are all in this boat, and there are few who are untouched or unscathed. Acknowledge this, understand the dynamics, do not let down your optimism and think faster, for in these times it is not your competitor that will take you down, it is not recognizing just how big a boat we are in, and just how many of us are on it. Grab the paddle. It is time to row.
David Graham is a managing partner with Michael Kim Wolf of Food 4 Thought, LLC which operates 38 Central in downtown Medford. He can be reached: david@38central.net or at his restaurant.