CEO says optimism replacing ‘doom and gloom,’ businesses should take advantage

Rieva Lesonsky Entrepreneurism is alive and thriving with the recession and the coming economic recovery, the CEO of GrowBiz Media said at Wednesday’s Small Business Innovation Summit & Expo; however, not everyone attending the conference seemed to share her view.

By Andy Owens
aowens@scbiznews.com
Published Nov. 5, 2009

The CEO of a California-based marketing company was taken aback at the response — or lack thereof — to a question she asked during her keynote address at Wednesday’s Small Business Innovation Summit & Expo in North Charleston.

“How many people here think the recession is over?” said Rieva Lesonsky, the CEO of GrowBiz Media. No hands went up. “Wow, none of you do.”

Rieva Lesonsky cropped Lesonsky opened the summit at Trident Technical College, saying the “doom and gloom” of the recession has been replaced by a sense of optimism, and, although no one thinks the recovery is complete, the numbers show economic activity and optimism increasing across several industries.

“We’re not talking about the doom and the gloom and how we can survive,” Lesonsky said.

She offered insight and advice, telling companies they must be entrepreneurial and innovative to take full advantage of the coming economic surge. Attendance at events like the small-business summit showed the entrepreneurial spirit is alive in Charleston.

She cited a recent study that indicated 76% of businesses said they expect the economy to improve in the second quarter of 2010 and 35% expect an increase in business in 2009.

“These people aren’t delusional,” she said. “Most of them had customers walk away. They lost customers. They didn’t cut prices. It was ‘How do we deal with this?’ The lowest-performers had all cut prices. That’s not to say they were arrogant. They were offering value.”

Among the advice she offered to businesses:

Recruit talent now. The recession has created a deeper talent pool that allows businesses to hire up for less money, Lesonsky said. “You can get excellent talent really cheap right now,” she said.
Shop small. Businesses can have a local impact by purchasing the goods and services of other small businesses in their areas.
Speak up. Lesonsky said small business interests must be represented in all recovery plans, including decisions on issues such as health care reform.
Renegotiate. Today, just about all terms are up for renegotiation — from landlords, suppliers and vendors. Lesonsky said businesses that can lock in long-term contracts at today’s prices can be more profitable and reduce costs when the recovery comes full swing.
Join a group. Industry and trade groups are valuable places to find like-minded companies dealing with similar issues. She said events like the summit, which was sponsored by the Charleston Metro Chamber of Commerce, are what chambers do well, and area businesses should join the chamber to support such efforts.
Talk to a kid. Lesonsky said there’s nothing like getting a jolt from teenagers who say they want to be entrepreneurs.
Remember cash is king. While businesses must scrutinize their cash flow and every purchase very closely, that doesn’t always mean going with the lowest price. “We’re on the hunt for value. It’s not about bargains,” she said.
Stop trying to be perfect. Many entrepreneurs want to revisit things they could have done better, but when a project is done, it’s time to move on to the next one, she said. “Good enough is good enough. You did a great job, now move along.”
Say ‘no’ to business. Businesses that analyze return on investment before accepting any new business often find it’s better to turn down the money than to accept everything that’s offered.
Invest in technology. Technology is inexpensive today, so take advantage of that and upgrade existing computers and computer systems and move to mobile devices to allow greater flexibility and easier access to your customers.
Stop worrying. “Stop trying to control the uncontrollable,” Lesonsky said.
Be objective. Would you be a loyal customer of your business? Lesonsky suggested that businesses put themselves in their customers’ shoes, to the extent of visiting competitors and evaluating the value and services they are giving, for comparison purposes.
Innovate. As markets expand, innovation is key to staying competitive and to providing extra value, and entrepreneurs must embrace a level of risk to reap the rewards.

“I really think we have to prepare now, today, this day, for the recovery,” she said.