Your Economic Stimulus Package

If you are waiting around for the government to provide you with an economic stimulus package that is really going to make a difference for your business, it’s time to stop waiting and start taking action. Here are four key steps to stimulate the economy where it matters most – in your bank account.

Take a step back and look at the most critical things you need to measure in your business – your critical success factors (CSF’s). If you were flying an airplane for your business, what gauges would you monitor? Sales? Margins? Expenses? Profits? New Customers? Customer Retention? Employee Productivity? Product/Service Quality? Be careful to ensure each CSF is something that you can measure – and that it is truly a critical measure of success for your business. Most businesses will have three to five critical success factors.

The next step is to set clear, quantitative goals for each CSF. You should start by setting annual goals for 2009, then breaking those goals down by month and perhaps even by week. Establishing a goal for each CSF accomplishes at least two things.

• First, it gives you something to work towards – your best projection of what is possible for your business despite the current economic conditions. Set your goals so they are achievable, but also to stretch yourself to higher levels of performance.
• Second, your goals provide a basis for comparing your actual performance to your goals. This is important because it establishes a basis for analyzing your results. If you are on target, you need to learn what you are doing right and do more of it. If you are off target, you need to determine the appropriate corrective action and implement those changes.

The next step is critical. You’ve identified your CSF’s and set your goals. Now you need to develop the core strategies for each goal. Your strategies are the three to five key initiatives that will move you towards achieving your goals. For example, let’s say you have a CSF for Sales and a goal of $1,000,000 this year. Your strategies may include different marketing approaches such as direct mail, advertising, public relations and Internet marketing, as well as building a sales team. Each strategy provides an essential element that when combined move you closer and closer to your goal.

The final piece of the puzzle is action planning. Although you only have three to five strategies for each CSF, you may have dozens of action steps for each strategy. Action steps are very specific and time-bound. The more specific and exact you can be in your action planning, the better results you can anticipate in achieving your goals. Your action plans will be continually updated as you complete each action and plan for the next steps to implement your strategy and ultimately achieve your goals.

Of course, none of these steps will help you if you don’t execute. You’ll need to establish a system of accountability to ensure you keep on track and execute your plans. I participate in a monthly alternative board meeting to help me hold myself accountable for executing my own plans. Send me an email if you are interested in getting involved in a similar structure.

It’s great that the government is taking steps to stimulate the economy. The macroeconomic impact could be significant. But if you are concerned about the microeconomics of your business, defining your CSF’s, setting your goals, developing your strategies and executing your action steps will go a long way to stimulating your economy.

About Bill Merrow
Bill’s marketing career began in 1984, leading to opportunities to manage a 40,000 person sales force and sell over $500,000,000 through direct mail. His consulting clients include General Electric, American Express, Walmart and hundreds of smaller firms. Bill specializes in helping small businesses differentiate themselves from their competition and create massive growth in sales and profitability. Learn more about Bill at http://www.azprofitplanners.com or http://www.linkedin/in/billmerrow. You can also contact him directly at bill@azprofitplanners.com or 602.821.7340.

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