Bolin: Business as usual won’t work in this climate

The historic ebb and flow of business cycles has delivered both hardship and opportunities for businesses and consumers.

I remember three fairly recent mini economic tsunamis — 1970, 1975 and 1982 — that created anxious moments. The 1975 recession in particular is stored away in my memory banks as are the hundreds of rejection letters this Class of ’74 Ithaca College graduate received.

You know, letters that start out ... “Thank you for your interest in ACME Corporation. Although you seem to have excellent qualifications...” No need to read any further. Rejection is tough to deal with.

So, here we go again. It’s 2009, and many of the area businesses that I have been in contact with are either very concerned (OK, scared), or wrapped up in their own cocoon hoping to emerge in a new bright business cycle.

Completely understandable. Even my typical “glass half full optimism is a bit unstable. And, something is different this time around: traditional leading economic indicators cast a confusing picture. Two weeks ago, a “we have bottomed out” proclamation was issued. Consumers haven’t exactly bought in to that, have they?

Kind of like getting a second opinion from a doctor, I sat down with Kevin Jordan, (right) president of the Commerce Bank of Green Valley and president of the Green Valley Sahuarita Chamber of Commerce:

Q: How would you characterize the attitudes of both your consumer and business clients?

Jordan: “Everyone is looking for the best rate of return. Our typical customer is fearful that their disposable income is under attack. They are cutting back on what they can.”

Q: What about the availability of financing for businesses?

Jordan: “First of all, businesses want someone they can talk to to explain what financing options may be available to them and we are doing more and more of that. At the present time, all financial institutions have tightened access to credit ... it is available, but there is a closer examination of credit ratings, financial health, market penetration or opportunity and the kind of business it is.”

Q: What is your advice to your consumer and business customers?

Jordan: “Consumers still have to eat, they need to put a roof over their heads, buy medication, have transportation, etc. But they are looking for the most “bang for the buck.” Businesses that can provide that kind of value will do well in any business climate - and those businesses are most attractive for financial assistance as well.”

Clearly, “business as usual” isn’t a recipe for success. What’s more, when we do emerge from this economic trough, customers will be demanding even more value. They will want their dollar to stretch as far as it can. They will want the best quality they can afford, and they will go where they can get it. Companies and organizations that can deliver the best value, will succeed.

What is a business to do?

Understand the value you are delivering now. Why do customers keep coming back? Why are they going away? Perform a SWOT (strengths, weaknesses, opportunities, threats) analysis. Fortify your strengths, fix the weaknesses.

Define you business by the value you deliver. Insure your customers know about the value you deliver to them. Ask them what else they may need from you.

Make sure every customer leaves with a feeling that they are welcomed and valued. Give them a reason to return.

This is hard work. Keeping afloat during these stormy economic conditions is challenging enough. But, there simply is no better time prove that you are worthy of your customer’s attention than right now. In times like this — business as usual? No way.

mbollin@cox.net, 520-548 5643