As the Croke Park ground-staff beyond the plate-glass windows mowed the grass and repainted the lines ahead of the first Six Nations rugby international of 2009, delegates at ‘Beat the Downturn’, An Post’s half-day conference for small businesses, could have been forgiven for thinking that the playing of ‘foreign games’ at the crucible of the GAA was not the only thing that could not have been predicted a couple of years ago. The severity of the downturn definitely fell into that category, too.
“We’re still doing a lot of business but it’s the lack of credit that’s killing us at the moment. We’re getting paid later and later and we’re having to ring up our suppliers and do the same,” said John Massey, owner of Ballycoolin-based Massey’s Plumbing & Heating Supplies.
Tommy Brown, managing director of green energy business Platinum Energy, a business he started last August, was hoping for brisk business from customers looking for green energy solutions but it has not turned out that way. “It’s been very slow to take off, to be honest,” he said.
These two business owners were among over 200 who had come to Croke Park to get inspiration and ideas about how to battle the recession. At the event, a range of speakers led by former supermarket tycoon Ben Dunne promised to offer advice on how to stay afloat in increasingly choppy waters.
First up was economist and media commentator Marc Coleman from Newstalk, whose fact-filled presentation explained how Ireland had gone “from Celtic Tiger to Garfield” in two years through bloated public spending, expansion in credit, and bad planning policies. He emphasised the cyclical nature of business: good times couldn’t last forever and businesses had to adjust to the new reality.
“We’ve had 14 excellent years. If you can’t take two bad years, then get out of business,” he said matter-of-factly.
But the news was not all bad. Demographic factors meant that Ireland’s population was winding back towards pre-Famine levels such that, by 2020, there would be half-a-million 16 to 24-year-olds in the country looking to spend money on goods and services. This would provide a “demographic dividend” for businesses, he said. “Global markets and population growth provide great opportunities for traded services.”
And Coleman also had some nearer-term cheer for delegates: in his view, the recession would be relatively short-lived and Ireland would begin to grow again, albeit weakly, from the end of 2010. If they could survive until then, there would be good times ahead, he assured them.
From trends and macroeconomics to micromanagement: PR guru Terry Prone’s talk focused on the specific actions businesses could take from a marketing and communications perspective to fight the downturn. Recession was time to return to business basics, she said; to do the little things right that can help retain customers.
“In a recession, what’s going to differentiate marketers is treating people like human beings. Making it personal is the best form of marketing.”
She suggested a number of ways this could be done – sending handwritten letters to customers instead of impersonal emails; being more open with customers and colleagues (“don’t become an emotional black hole”); building up good reference sites (“one good reference site is worth a campaign”); listening to staff and learning from them; and “hanging out with optimists” in order to stay in a positive frame of mind.
Above all, communication should be one-to-one and personalised.
“Once you do it right with one person, you’ve a chance of doing it right with thousands,” she maintained.
The importance of attitude and personality was also highlighted by the next speaker, Pearce Flannery. According to Flannery, managing director of business consultant Pragmatica, survival starts with trusting your own instincts and talents – an observation that would surely have resonated strongly with the many owner-managers present.
“Do what you know – people often underestimate themselves and their own ability,” he said.
Like Prone, Flannery stressed the importance of connecting with customers and understanding their needs and what they think of your service. “Think like your customers because it’s they who write the cheques … Find five or six customers you most respect and do a focus group with them. It will give you a lot of information about your business.”
On paper, millionaire and former supermarket tycoon Ben Dunne had little in common with an audience consisting of small business owners. But he clearly felt otherwise. “I’ve gone full circle; I’m running an SME again,” he said with a chuckle, referring to his embryonic fitness business, which stands at three centres currently, but with, one suspects, more to come.
A couple of years ago, Dunne said that “there is never a bad time for a good business”. Despite all that’s happened since, it is, he said, a statement he still stands over “provided the business is based on sound principles and managed correctly.”
He added, “If your product is right, your employees are getting job satisfaction, your business is properly capitalised and your tax affairs are in order, then you’ll prosper.”
But, in characteristically forthright fashion, Dunne said that to survive the recession business owners needed to get to know their own business by going to the “frontline” as often as possible and not listening to “the bullshit”.
“Good judgement, self-discipline and keeping a cool head in a crisis” were other important attributes needed by business leaders in these trying times, he said. Most important of all, however, was not being afraid to take action.
“At times, rapid response is necessary. At other times, you can be more patient about making your response but one way or the other you must respond.”
In summary, Dunne’s speech was a manifesto for action: a call-to-arms to business leaders to take responsibility, roll up their sleeves and manage their way through the tough times ahead.
But despite the challenging environment, Dunne was optimistic that Irish business could once again prosper.
“We have done fantastically well over the last 20 years and I believe we are well capable of performing even better over the next 20.”
View the presentations
Marc Coleman, Newstalk: Marketing: the antidote to recessions.
Marc, a premier media economist gave an honest view of exactly where the economy stands, how we got here, where we're going and, importantly the impact to small to medium sized businesses.
View Marc's presentation
- AnPostFeb09MarcColemanppt.ppt (new window, .ppt, 1.7MB)
Terry Prone: The real value of customer communication.
Terry, a PR and communications expert showed us how to ensure your customers keep choosing your business. She'll shared why retention is the new acquisition and why SMEs have a competitive advantage over larger businesses.
View Terry's notes
- AnPostFeb09TerryPronedoc.doc (new window, .doc, 27kb)
Pearce Flannery: Everything you need to know to start
Pearce, Author of Grabbing the Oyster - Ancedotes and Advice from Icons of Irish Business, showed us how the smallest business can make their communications more effective and how to get the most enticing message to the correct person even on a strict budget.
View Pearce's presentation
- AnPostFeb09PearseFlanneryppt.ppt (new window, .ppt, 2.36MB)
Ben Dunne: There's no such thing as a bad time for good business
Ben, a man who has never been afraid of a challenge, talked about how you can can turn the downturn to your advantage. And he showed us how innovative thinking can help spot opportunities for business right through the uncertain times ahead.
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