How to Resuscitate a Hot Firm That Has Cooled Off
Press Release: September 21, 2011
FAYETTEVILLE, Ark. (September 21, 2011) — It’s no big news that a rough economy has taken its toll on many architecture, engineering, planning and environmental firms, but this situation isn’t a be-all-end-all. For all the firms that used to be on the fast track of high growth but aren’t anymore, Mark Zweig, founder and CEO of ZweigWhite, has a few ideas.
“There’s not one thing that will turn things around. It’s many,” he says. The solid majority of firms will benefit from doing the following:
1) Make an increased investment in marketing
Do a research project: Plot marketing expenses as a percentage of your net service revenue. Then show revenue growth rate for each of those years. Do you see a pattern? A panic-inspired reduction in marketing expenses in 2006, 2007 or 2008 has led to a corresponding drop in revenue at many firms.
2) Pay out a percentage of your profits to everyone in the firm
Pay it out monthly. No matter how small everyone gets fired up about getting a piece of the profit pie.
3) Change your stock valuation method.
Encourage owners to grow the firm because their personal holdings will be worth more.
4) Move out a few duds.
Non-performers are a drag on the spirits of everyone –something you can’t afford when you are trying to start growth again.
5) Bring on a few new key people.
Breathe life into the company by replacing the duds you canned with some new, motivated, capable people who will do their jobs.
6) Be positive at the leadership level
Blaming the economy or appearing hopeless certainly won’t create an atmosphere where any improvement is possible.
7) Start something new
Get into a new service. Try a new geographic region. Get into a new business –just try something new!
Mark Zweig, management expert and student of the industry for the past 31 years, writes an editorial for every issue of ZweigWhite’s weekly management publication, The Zweig Letter. These helpful and entertaining articles have been compiled into one publication, Management From A to Zweig. This extensive compilation of over 840 pages, covers every topic possible in the A/E/P and environmental industry –from strategic business planning to turnarounds, partner separation, organizational restructuring, cash flow crises, ownership transition and so much more.
For more information visit www.zweigwhite.com/p-545-management-from-a-to-zweig-revised-edition.aspx