Be Successful Here

Part of the responsibility of a product development team is to reduce both the technical and commercial risk for the company that a project will fail after it is commercialized. Usually, a company will complete a significant amount of research to minimize the technical risk by developing a product that meets the customer’s requirements and can be made economically at production scale.

To address the commercial risk that the team will choose the wrong applications to pursue, project teams use an application map that shows the various likely applications for the new product and the team’s approach to moving through the various applications. The path will be determined based on product performance, customer requirement similarities, and potential profitability.

While the plan will change over time, the application map is a great visual tool for helping the team stay focused on success. Without such a map, it is easy for groups to focus only on a large application that could take 5-10 years to come to commercial fruition. In an economic downturn, management may choose to cut the project.

Other groups might focus only on a small initial market to test the commercial waters and then spend too much time trying to make the product successful in that small initial application, rather than moving on to the next application.

Developing the application map requires joint communication and understanding of target market requirements and technical capabilities between the commercial and technical members of a product development team. To make the most effective use of the products as they are developed, it is important to focus research on developing products that meet the requirements of the initial target markets and then sample to those market segments where the newly developed products can be used.

Not only will this provide a greater return faster on the research that has been done, but it will be easier for the sales organization to convince customers to try the product. Data that other customers have been using the product will have greater impact on customers when they know that the application requirements where the product is currently being sold are similar to their own product requirements.

The question is one which everyone is attempting to find an answer to; how can you grow a business in an economic downturn when many companies are merely struggling to keep the doors open?

Some companies attempt to wait out the downturn and do nothing, but the proactive business owner knows that every attempt should be made to increase sales even with a smaller market share.

Here are a few pointers on growing your business in hard times.

Find Your Direction

The housing industry suffers during a flat economy because people can’t afford to build. Construction companies that make it through the slow times have to diversify and find the building markets that can still provide some work. Other businesses are no different.

If your target market has evaporated, consider changing direction to something that is viable. If it is possible to divide resources to focus on several different potential fronts, find what related fields you might be able to pursue based on competition and market demand.

Increase Opportunity with More Contacts

Some business owners don’t realize that they must work harder during the times when business is slow than they do when times are good. When there is plenty of work on the books, establishing new contacts and clients takes a back seat to production.

When business slows, it is time to invest longer hours beating the streets for new prospects. Increasing visibility by advertising and promoting a more prominent online presence is all part of bringing in more potential customers.

Decrease Overall Costs

If your company is hurting financially, you can well imagine that others in your industry are, too. Some of those companies are suppliers of the raw materials you need to conduct business. During a downturn is the best time to negotiate prices and look for special deals.

If you can lower your production costs, it may be possible to lower your price to clients, making your brand more competitive and attractive in the marketplace. This should help your sales and be reflected in company growth.

When you begin to trim fat, you should look closely at your books to determine where every dollar is going. It may be possible to change up services you receive from attorneys, accountants, insurance providers, and others. Many overhead costs need to be shopped on a regular basis anyway, in both good and bad times.