Now that the economy seems to be stabilizing again, many business owners find themselves looking at how they can get back into a healthy growth mode. For the record, I don’t think we’re going to return to the high-flying times of 2007 anytime soon, but I do believe the mindset has turned away from survival tactics and more toward viable growth strategies and business-building opportunities. 

 

I saw some proof of this positive energy recently when I attended The NBM Show in Indianapolis where attendance was very strong—and, more importantly, shop owners were giving priority to education, capitol investment and expansion. It seems that sign and graphics businesses are experiencing a surge in demand for their goods and services, and they are restocking their consumables and, in many cases, upgrading their production equipment. 

 

Why? Well, it’s because customers are making the signage and graphics purchases that had been deferred during two years of recession. I believe this pent-up demand is what’s driving the current surge in growth. Hopefully it will gather steam as unemployment continues to ease and credit becomes more accessible later this year and into 2011. But what about the long-term growth strategy in our post-reset world? What do we do after this initial surge starts to slow? 

 

A solid long-term strategy will sustain growth and keep your business from bobbing around like a cork in the sea, subject to the temperaments of changing economic tides and a slow, erratic economic recovery. Bear in mind that most economists are saying that the longer term growth in U.S. spending is expected to be significantly below the historical three to four percent annual growth we’ve enjoyed for decades. 

 

I believe that there are several practical avenues available to us as we move forward, and that technology will play a key role in our long-term growth. Businesses need to be better, faster and more cost competitive in order to compete effectively. This will mean not only upgrading production equipment, but also setting aside budget for improved information technology (IT) tools and personnel—and possibly thinking about bringing in a technology consultant in order to help you make the wisest upgrades. 

 

Some common-sense ideas for growth strategies include remaining focused on your core business, continuing to find new customers, placing priority on improving efficiencies and streamlining operations. But don’t be afraid to diversify where it makes sense. 

Here are some other practical tidbits to consider:

 

• Pay close attention to cash flow and increasing asset turnover to improve working capital.

• Employ stringent cost controls.

• Utilize technology to reduce labor and distribution costs.

• Form partnerships with other firms to share costs and augment your offerings.

• Implement a lean management structure.

• Initiate cross training of staff. Better trained, more versatile workers allow firms to do more with less.

 

And remember that first-rate customer service and customer service initiatives will always distinguish your business from your competitors. But in the end, it all boils down to leadership. You, as a businessperson, are ultimately responsible for the direction of your company. Your customers, and your staff, are looking to you for leadership and to make sound business decisions. Do your homework, be smart with your money—and be careful out there.

 

Okay, back to work.