In the last few months a lot has changed with business.  I am sure you’ve noticed it in your own business.  Nothing is quite the same as it was. For most of us, we haven’t ever experienced an economic downturn quite like this in our lifetimes.  If you continue to operate your business in the same way as you did a year ago or even six months ago, your prospects for success will be doubtful.

Let’s take a quick look at General Motors. 

America’s largest car company that advertises “apple pie and Chevrolet” has a massive, monstrous list of business problems.  Many of GM’s business problems appear to be unsolvable.  For instance, it costs GM about $2000 more per car than it costs the foreign car manufacturers. 

To succeed, GM has to develop a plan to cut its expenses and stop burning through billions of dollars.  GM must get rid of some of its legacy costs related to labor structure, reorganize the entire organization, refit manufacturing plants for the cars of the future and negotiate with the unions and suppliers regarding current contracts in order to merely survive in the short term and prosper in the long term.  The band aid approach won’t work here.   Without truly solving these business problems, GM will in time become a shell of what it once was.  If survive at all.

But here’s the real problem:  GM isn’t currently manufacturing cars the American public really wants.  For too many years GM believed they held the power in the auto industry and didn’t have to make fuel efficient cars, didn’t have to streamline auto design, didn’t have to build a better vehicle.  Today, GM’s very status in the world is on shaky ground and threatening to destroy a once great auto company.  While their rivals, foreign car manufacturers such as Honda and Toyota, stand positioned to takeover. 

The question is – is it too late for GM?  Is GM too big to turn around?  And is GM willing to do what is necessary to turn around?

Yes, it is about corporate and manufacturing costs, but it’s about selling cars. 

How does this relate to your business?

Due to the economy and the recession environment, it may very well be more difficult to sell your product or service now than it has ever been. 

Are you providing the products and services that your customers want?  Or like GM and the auto manufacturers that comprise the Big Three, are you still in the mode of selling outdated goods and services? 

This economy is about survival of the fittest.

If you want to survive the current economic downturn, you have to look at all aspects of your business.  Re-examine pricing, concentrate on sales and marketing and possibly even give “deals” to your customers (that still yield a profit though not as much as you would expect during normal business times) to make sure you are creating the cash flow and profits to pay the bills – even if all you do is break even every month till this economic crisis is over and customers open up their wallets again.  And when they do, will you and your company be well prepared and ready for the inevitable upswing? 

This is the time to “pull out all the stops” and do everything that is legal and ethical to maintain the business.  All customers are important, big or small.  It’s time to readjust your attitude and thinking; and work harder and smarter than you ever have knowing you will succeed.