Ready for the Rebound

Revved up for the economic recovery? Run this five-point inspection to ensure your business enters the recovery firing on all cylinders

by Shannon Sutherland

While any big race allows for the occasional pit stop for a tire change and refuelling, it leaves precious little time for a thorough tune-up until the engine has cooled and the smell of burning rubber has finally faded. With the frenetic pace of the boom, owners and managers struggled to focus on the same kind of basic maintenance. Training or evaluating customer service was postponed for free time that never happened. Expansion was often unthinkable as the price of office, warehouse and retail space was sky-high – if space could be found at all. Talent was just as scarce.

Things have changed, and now is the perfect time for that engine overhaul. Staff have time on their hands and are eager for professional development. Fresh talent you’ll be wishing you’d hired once the pace quickens again are available now, as downsizing and closures have displaced some solid candidates. New opportunities will present themselves to build the corporate brand through well-chosen philanthropic programs. Even the physical body of the business can benefit as the costs of modern equipment, property and construction are all down.

Overall, the downturn is presenting the enterprising with an unexpected opportunity.

“One of the greatest strengths of small businesses is that they can respond and adapt quickly, and any business that has been through a downturn knows that this is a terrific advantage,” says David Wilton, co-author of Get Growing: Unlocking the Potential in Your Small Business, released last June. “People need to go back to their business plans to figure out which areas they can invest in now to give them a competitive advantage in the future when we pull back out of this.”

Alberta will see real GDP growth above 3% in 2010, according to a summer forecast by the Conference Board of Canada. And, after two quarters of economic volatility prompted province-wide confidence to slip into pessimism, many entrepreneurs and managers believe better times are ahead, according to the latest ATB Financial Business Sentiments Index (BSI).

Ladies and gentlemen, start your engines.

Many entrepreneurs and managers believe better times are ahead.

For many businesses right now, it hurts to give. In the year ahead, many companies will be making less cash available to charities, according to “The 2009 Corporate Philanthropy Agenda: How the Economic Downturn is Affecting Corporate Giving,” a report released last spring by the Conference Board of Canada. That may not, however, be the best strategy for building a brand. Nearly seven of 10 consumers would remain loyal to a brand during a recession if it supported a good cause, according to a recent survey by Edelman, the international public relations firm.

Obviously, that’s a survey few business owners and managers have read. “It’s tough right now,” says Leann Hackman-Carty, president of Blue Heart Consulting in Calgary, who’s heading up a new capital campaign for Calgary Meals on Wheels. “People are watching every dollar.”

The situation at Meals on Wheels is incredibly frustrating, says Hackman-Carty. While the organization was able to take advantage of the downturn by securing a great deal on new space that will allow it to triple production with no new staff, it has struggled to find financial support from corporate donors. For any company looking to build up credibility in the CSR department, the recession has created some valuable opportunities to connect with local communities. According to Hackman-Carty, it’s a great time to stand out by stepping up.

Cut costs of professional development by using online programs, by negotiating discounts with training institutions based on volume or commitment, or by training senior employees to conduct in-house sessions with junior staff.

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