Risky business in tricky times

by Linda Julian

You don't need to be reminded that we're living and working through extraordinary and turbulent times. One tempting response to the tough business climate is to become excessively risk averse and tighten controls to a point where they stifle business development -- another is to go on a "risk binge". Right now, among professional practices, we see both these responses in play.

Realistically identifying and assessing market risks, followed by informed choices about business development, is the right way to move forward in these tricky times.

These tips may help:

Think carefully before you act. Be sure that your clients, staff, and competitors take cues from what you do.

Take a fresh look at your value proposition -- this time, most definitely from the client perspective. The time is ripe to re-craft your messages to ensure you are selling what clients want to buy right now: results, certainty, ease of doing business, as well as all the lovely "feel-good" factors.

Nebulous, general marketing and branding is low risk but usually also low return Well-conceived and targeted business development is also low risk but with better prospects of healthy returns.

Right now, you can safely assume clients apply microscopic scrutiny to value for money. This is not the time to nickel and dime clients, nor is it smart to pad out timesheets and bills to improve your current month figures

Now is the time to shower extra attention on clients loyal to you in the past. Reduce risk of a competitor luring your clients away by stepping up the service and value.

Encourage clients to maintain or increase their spending with you on services which produce for them the greatest measurable value in the shortest timeframe. Estimate (yes, quantify and then articulate) the business impact on them of your proposal. Promote your services around measurable results ahead of "soft" benefits.

Make you and your firm a fit for the client rather than asking clients to do contortions to fit you Don't let your rules and regulations, procedures, and administrative requirements stand in the way of getting good clients to do good business with you -- lest they be enticed away by another professional services firm which is a whole lot less bureaucratic.

Accept that many of your clients are under more pressure than ever -- and not just financial pressure. Business is simply harder than before. Don't add to their stress and nudge them to an "I'm over that professional services firm -- lots of others would really like my business" statement.

Be flexible. There are other ways to do things and now might be a good time not to rigidly follow the pattern of your past.

Recognise business development initiatives and people who take measured risks to get results. Be prepared to resource and doubly reward successes.

Choose external consultants and advisers carefully. Check that they have in-depth insights into your target markets and a track record of succeeding in the face of challenges like those you face. Take a hard look at any grandiose ideas and panaceas they offer and be especially wary of "one size fits all" solutions.

Accept that developing business is not risk free. Only rarely are results guaranteed. Not marketing does, however, guarantee results.

Linda Julian is at www.julianmidwinter.com.au