While downturns come and go, it can be hard to ignore a recession when the media puts in your face every day. So beyond living in complete denial, what’s a business owner to do? Why not recognize opportunities that recession can bring to your business?

Here are a few points to ponder:

• Despite everyone preaching to the contrary, demand for most products does not disappear or decline more than 10%. Demand simply morphs and transforms. Take a good look at what your customers are doing to cut back and recognize the choices they’re making and how you can exploit them.
  
  
• Identify what your customers want vs. what they need, as these change during a recession. Strangely, some wants actually grow during a recession as people compensate for sacrifice in the strangest ways.
  
  
• Fully understand the money vs. time paradigm. Your customers will always have more of one than the other, so figure out how you can exploit this.
  
  
• If business is slow, now’s the time to rebuild or extend your Best and Highest Use. It’s a great time to start initiatives and build for sunny days.
  
  
• Despite the credit crunch, money is much less expensive to borrow in a recession as the Federal Reserve Bank cuts interest rates. Hunt around, as money is there to borrow, and when you find it, it can be a bargain. Also negotiate aggressively with your service and resource providers. Many are much more flexible than you might expect.
  
  
• Find the underserved and neglected in your marketplace. There are many folks and businesses that are not being adequately provided because their suppliers have abandoned them for greener markets. How can you step in?
  
  
• Seek out and walk with winners. In any recession, there are many folks who actually do better. Find them, serve them and grow with them.
  
  

There is an old saying, “Things are never as good as you think they are or as bad as you think they are.” A recession is precisely so. Dont ignore it rather exploit it just as you would a growing economy. Doing so during a recession is a true test of your business mettle.

Rise up and seize it.

Recently, Kathryn Landers of Felber & Felber Marketing interviewed me on public relations and how knowledge businesses can best plan, use and profit from PR

Andy, how do you define public relations?

To me, PR is the promotion of one’s expertise and value through non-advertising traditional and electronic media and editorial outlets.  When your “smarts” are independently and objectively published by third parties, so your audiences can read and see your value endorsed by others; that is effective PR.  The best PR usually includes examples of how your clients have benefited from your value.

Andy, how do you look at PR?

I think of PR as falling into three categories: Reactive, Active and Proactive

• Reactive PR consists of responding to preexisting stories and inquiries from reporters who need experts.  Websites like www.prleads.com and responding to other’s blogs is a very low-commitment way to demonstrate your expertise
• Active PR is using the wire services like www.prnewswire.com or www.expertclick.com  to circulate press releases on your firm’s progress or value.  They work best when there is a direct “hook” between your news, a current trend/event and your unique spin on it.
• Proactive PR involves creating both the content and the venue to broadcast it.  Your own blog is a great way to start as I have on www.birolsblog.com. Traditional, Internet and satellite media tours, speaking at trade shows and press conferences and “dog and pony” all work if you have the right story to tell.

Andy, what advice would you give to a business owner just beginning to use PR??

• First determine your firm’s Best and Highest Use. 
• Second, define who is your target audience, and third what information they will value.
• Then determine which media and editorial resources they watch and read.

The final step is to continuously create valuable, unique information that provokes your target audience to contact you for more.  So you need to become disciplined and regularly:

• Develop content in the form of articles, write papers and ideas
• Create and use case studies, results statements, testimonials showing how others have benefited through content
• Any time you can involve your clients in the PR effort it is much better.  Reporters, and conferences just love it when a client stands beside you and talks about your value and how it helped them

What do you think of business owners hiring  PR firms?

Writing and self promotion doesn’t come naturally to many owners so there is a trade off of doing it yourself or hiring specialists like my firm of Felber & Felber Marketing.

• In my case, I develop the content myself. 
• Together we decide how much reactive, active, proactive PR I need to get my messages seen and heard. 
• Finally, I turn over the execution of proactive, active, reactive PR to Felber & Felber Marketing to efficiently deliver my message to the media. 
How each business owner should implement their PR is a function of their Best and Highest Use, time, budget and personal preferences

Conclusion
PR is the most efficient marketing any business can do.  When established third parties are publishing your expertise you earn a great payback on your investment of time and money. Start with your inherent value and figure out who needs learn about it and where they are.  Then go tell the world.  You will be glad you did!

Recently I was hosting a session of my Rainmaker Roundtable, a select group of entrepreneurs who sell services to other owners, on the topic of professional integrity and ethics. With their input and my further thinking, here are my three conclusions.

1. Know exactly who your client is and always serve them best. For example, if your client is the firm and the owner is a destructive influence as its president, you have the duty to do what is best for the company up to and including removing the president so the owner and the company will thrive.
2. Be true to how you make money and don’t compromise. For example, if you make money dispensing unbiased advice, don’t take a commission recommending a vendor who provides what you just prescribed
3. Always practice transparency unless it compromises confidentiality. For example, if you will make money, benefit, or be placed in a compromising position by learning or knowing some information, tell the person providing the information why, beware ,or to stop. And when the information comes from your client, (See #1 above) it is absolutely confidential.

What do you think?

In October, a long and tempestuous relationship between the owner and coach of the New York Yankees came to the breaking point. Even if you aren’t a baseball fan, or hate the Yankees, what lessons can we all learn on managing the leaders of our businesses?

To review, Joe Torre, with only a couple of years left before retirement,  expected to remain with the team he took to twelve (12) playoffs and four (4) world championships. With his track record and penchant for managing to the highest standards of integrity, respect and consideration for his players and fans, Torre felt he was beyond evaluation or a performance-based contract. George Steinbrenner, the owner, was in complete disagreement. As the boss of baseball’s most storied team, he and his sons have a singular expectation–World Series Championships–and pay the price for victory at any cost. As we all know, the opera of Joe and George had its finale when Torre rejected Steinbrenner’s victory-based one year contract out of hand, leaving both without a contingency plan.

As business owners, what we can learn and avoid from this sudden ending to one of baseball’s greatest successes?

If you and your president:

•  Personally or professionally disagree on objectives, get on the same page now for your organization’s sake.  Otherwise your people will try to reconcile your differences and in the process waste everyone’s time, money and energy.
•  Have to compromise on how your objectives will be met, determine your personal threshold of acceptable disagreement that you will not only tolerate.  Never fight in front of the “children” whether they are customers, employees or vendors.
• Create a contingency plan or go-to resource for resolving differences, you can avoid needless escalations that can bring you to business divorce.
• Prepare a doomsday scenario and a triage plan if you have to eject your president or if he/she walks out.  Understand that the more you have prepared for a crisis, the less it will be seen as one

Managing a talented, capable leader can be one of the most trying challenges for you as the owner. And if your president becomes respected by your customers, employees or vendors, you may have created a peer who threatens you.  But if you recognize you cannot lead your business all by yourself and have found a talented second in command, managing through your two egos, testosterone and quirks will be a lot easier.

Dear Clients, Colleagues and Friends,

Do you need a jolt to shake out of your ownership doldrums? Use the virtual world to generate some of your own buzz. Recently, I was bemoaning what a boring and challenging a month October had been when:

• My business was named a HB100 winner here  where I ranked 7th!
• Last month’s www.birolsblog.com post was featured by Carnival of the Capitalists, the web’s premier reviewer of business blogs
• A clip from my recent NYC speech appeared on YouTube Link
• I was contacted by a Vietnamese publisher who wants to translate my book, The Five Catalysts of Seven Figure Growth and market it in his country.

(WITAFYB) What’s In These Anecdotes For Your Business?

With and through Web2.0, if you share your message and value, the Internet continuously and economically promotes your expertise and your business.

Are you interested in a new idea for doing this in your business? Ask me below and I will respond with an idea for you!

In writing The Five Catalysts, I described how confidence and conviction is any owner’s first catalyst for growth. And this confidence and conviction comes from a defining point that pushes on owner to turn her or his passion into action.  With October being National Women Business Owner’s Month, I got to thinking how so many successful women-business-owning clients of mine got started and how they built their businesses successfully despite surviving divorce, being widowed, or having to support a family where success was not an option but an imperative for survival.

And as their businesses have grown, I see that “women’s intuition” has caused many clients to make better decisions based on reasoned judgement.  Certainly, fewer women owners are “too smart to help” and aren’t making testosterone-driven decisions based on ego and “diminishing capabilities.” Maybe I have just been lucky, but women are more willing to listen to outside advice which has made them great clients I have been able to help more than average.

In this time of changing business environments, customer demands,and irrational financial markets, there are a lot of women business owners whose patience and perseverance have brought great value to their customers, employees and vendors!  And on top of this, many are also raising families at the same time.  Do you agree, why?

Last Friday October 5th, Birol Growth Consulting sponsored Ed Poll of LawBiz who led an excellent workshop to an invited group of lawyers on practice development.  Attendees were Managing and Senior Partners of a cross section of large, medium, and small Cleveland firms. Here are my notes amd observations from the presentation.

Please post your comments, reactions or questions at the bottom or contact Ed Poll atedpoll@lawbiz.com or Andy Birol at abirol@andybirol.com.

• There is a direct correlation between a law firm’s business proficiency (not their legal prowess) and a law firm’s profits.

• Lawyering is a true team sport. If your client participates in the process to achieve their outcomes they won’t criticize themselves or their lawyer. Show your client that you are on the same team in implementing their success.

• Most lawyers don’t bill for learning curves when starting to work with a client and lose 15% of revenues for not doing so. Lawyers also lose revenues through pre-bill write-offs (due in part to the learning curve problem lowering their realization rates. Lawyers finally lose more if they don’t collect at least 90% of what was billed.

• The reason lawyers lose so much in uncollected work is by not knowing enough about their client. Since the client assumes the lawyer is an authority figure there are only three reasons the client won’t pay:- They did not want the work

  - They did not expect the bill

  - Too much time was spent on the work

• Raise rates annually and gradually by selling first to yourself, then to prospects and finally to clients.

• Rainmakers are the most valued people in a firm, despite most lawyers preferring not to sell. You can always find a lawyer to do the work if you have sold the work!

• Remember 60% of prospects come from referrals. You start a client relationship with full trust and can only screw it up with insufficient service

• It is never the client’s fault that they don’t pay it is always your fault you did not do something right.

• Running a successful law firm means being proficient at getting business (marketing), doing the work (being productive) and thirdly getting paid (administration).

• While the bar association will never give continuing education credit for developing sales or marketing expertise, it will do so for repositioning the lawyer’s need to better communicate with the client which falls under the category of ethics so lawyers should seek out educational opportunities accordingly.

As the host of the event, I found it eye-opening to listen and learn how lawyers see their businesses operate from “their side of the table” and how similar yet different a law firm is from any other service business. While the legal vocabulary is quite different from that of other industries, I saw common ground in the challenges of balancing any firm’s need to sell, deliver and develop their businesses all at the same time as I have defined here. Whether you could attend or not or are a lawyer or not, what do you think?