As our country spirals deeper into a recession and survival strategies become the new intellectual staple, a national movement is under way: the movement to simplify.
Thrift experts, green economists and previously closeted coupon clippers are the newest celebrities. Reducing excess and getting back to basics is their cause.
Whether it's the economic reality that we now have less, the ecological premise that we can live on less or the moral argument that we should require less, less has become "the new more."
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How does less play out in your business? Where can simplification be a pathway toward a better business--instead of a painful placeholder until this depressing but supposedly not-quite-a-depression-thing ends?
Here are some less-is-more strategies taken by business owners who have focused on surviving--and even thriving--during this challenging economic period. I call all of them "Roni" for privacy and expediency.
Simplify relationships: Now's the time to take a fearless inventory of unhealthy relationships (ineffective alliances, underperforming employees, abusive clients) you've hung onto in your business out of habit or fear, and to make some real changes.
For years, Roni lived with an ineffective assistant whom she inherited from her business's previous owner. "I made a promise and felt honor-bound to keep her employed," she confides, "even though I knew I deserved a much more effective assistant."
The economic downturn forced Roni to simplify by replacing her full-time assistant with a part-time expert assistant who costs less but is more effective and proactive.
The positive impact was evident within days. "This recession has forced me to redefine my role from caretaker to leader. [It] forced me to save money and hire better-performing employees," Roni says.
Replace excuses with accountability: Seize this tough time as an opportunity to make changes that could yield lasting results, not just short-term survival. This may include firing placeholder employees (people who show up but contribute little), switching to a contractor vs. employee model, reabsorbing work previously given to costly vendors, altering the compensation structure, diversifying products or services, or redesigning bonus structures (if they exist) from entitlement to performance-driven.
Roni describes the economic downturn as her "permission slip for big change" since it finally forced her to move to a four-day work week and change most of her employees to commission-based compensation. This proved a useful incentive for her employees and an opportunity to monitor and improve their effectiveness.
Shore up your margins: Stare profit in the face. During times of struggle, some business owners find it easier to focus on survival instead of profit. Don't consider profits a luxury; they're a requirement, even during difficult times.
Roni realized that if she set aside profits from her incoming revenue first, she could assign the remaining funds as a "work budget" for her employees. This, in turn, forced members of her staff to budget their time and resources in line with what would keep the company profitable.
Additionally, she converted her customer-service goals into a step-by-step customer-service process for employees to follow. She anticipates that this will translate to time savings for her employees and an increase in customer satisfaction.
Replace advertising dollars with time invested in pivotal decision-makers: How can you factor in fun in such stressful times? In Roni's case, her fun time incorporates a strategy to support her business.
An outdoor enthusiast, Roni decided to cut her marketing budget in half and convert the remaining marketing dollars into field trip funds. She takes a different prospective client with her on weekends to one of her favorite outdoor adventure spots. She knows from experience that when she gets away from the hustle and bustle of the office and brings along a prospect, she has a unique opportunity to bond with that individual, which often leads to more business.
"I close business 80 percent of the time when I am sharing an adventure with a business contact," Roni says. "Being outdoors changes the dynamics of my relationships." She has scheduled two monthly outings over 12 months and thinks the first one was tremendously successful, not to mention enjoyable and profitable.
Convert survival plans into strategic repositioning: Approach the changes you're making in your business as a restructuring strategy instead of a temporary stopgap.
"We're using this recession to redesign our company. And we won't be returning to our old ways; this is the new business as usual," Roni says. "It was a huge step for us to put our team on notice that things are changing permanently, and for the better."
Think from your garage: If you started your business instead of bought it, now may be the time to revisit why it worked well when it was still in the "garage" stage.
Roni realized that her large office was an unnecessary burden during this slower time. While she isn't anxious to move back to the garage, Roni has renegotiated with her landlord, closed a remote office and put her remaining employees on a flextime schedule, reducing her overhead while her employees share the remaining space. This gives her more time to regroup so she can withstand a lengthy economic downturn.
Remember, these challenging times may present the best opportunity you ever have to make swift, bold changes to your business. Realize where you stand. Redefine what you need. Recalibrate your business to respond to the inevitable challenges to come.
There is no better time to do more with less--to simplify. Don't wait any longer. Act.




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