I love it when companies shape a strategy in order to save themselves. Usually, when companies make drastic changes they usually just downsize(e.g., lay off the receptionist and the file clerk.) This was a common story in 2010. But not for The Atlantic. Gigaom recaps the resurrection of the Atlantic after it had not showed a profit for over a decade. In 2010, The Atlantic implemented a revolutionary strategy that resulted in a $2 million profit. I will not repeat the article but outline some ideas that you can take to your business.
- Be an industry leader, not a follower. (see my previous blog on Looking in the Rear View Mirror).
- Make a cash flow budget over the next year, but don’t use that as a strategy. It should only aid your tactics to stay in business until you execute your new strategy. If you are a business in the black, make one anyway. It may help you run more efficiently.
- Investigate the concept of shifting some of your operations from a brick and mortar business to a viral business. For example, if you own a restaurant, at first glance, you may not see any opportunity to avoid the brick and motor business because you need a place for your customers to sit. However, have you thought of packaging meals for web orders? This strategy may only account for 15% of your business, but it could have a 20% higher net profit return. There are many options.
- Review your target customer. Are you meeting their real needs, or you just trying to sell them what is most profitable for you? Do you need to target a new clientele? A good example of this is the Five Crowns Restaurant in Corona del Mar. The restaurant was established in 1965 and has catered to an older clientele. About 2 years ago, they allocated a portion of their restaurant with a seperate entrance called The Side Door. This pub-style, fun-loving division has been popular with the younger crowd.
- Adjust your operations to your strategy, not your strategy to your operations.
In these difficult times, there are still opportunities for those who dare to take the initiative.