Inside the Businesses Thriving in the New Normal

At a recent NY Report event, more than 75 local business owners got together to exchange ideas about how they are surviving and thriving in the “new normal.” The event for “Conquering the Crisis: How Clever Small Business Owners are Adapting in the New Economy,” sponsored by Citibank, featured four moderators: Gene Marks, owner of The Marks Group, PC, and writer for Forbes.com and BusinessWeek.com; Steve Strauss of The Strauss Group, Inc. and author of The Small Business Bible; Jennifer Walzer, CEO and founder of Back Up My Info!, Inc. and blogger for The New York Times; and former managing editor of Fortune Small Business magazine, Dan Goodgame. The moderators led four discussions, in which successful area business owners talked about how they are overcoming the economic hurdles and ultimately thriving in the areas of customer service, marketing, upgrading staff and managing cash flow. Here are some of the top takeaways from the event:

Getting your clients to pay on time: Several of the roundtable participants said they struggle with managing receivables from their big corporate or government clients. While it may seem obvious, several participants offer discounts to customers if they pay early or on time. While the business owners don’t like to lose money due to a discount, they felt it is a better outcome than carrying the receivable.

Others ask for clients to pay half of the money upfront. One business owner found success by personally making the calls to her larger client for the first 30 days and inserting a picture of herself in her email signature line so the client knew that there is a person on the other end of the deal. Another suggestion was to have an advocate or a go to billing person inside the other company, especially when dealing with larger companies, otherwise your invoice or payment may end up in someone’s inbox, unnoticed for days or weeks.

Build relationships to get discounts: Participants who pay their vendors on time said they were in a better position to negotiate deals and discounts in the long run. One participant said she isn’t shy about always asking for a discount. Ask if you can receive a 5 or 10 percent discount if you hit the payment deadline early or on time. Gene Marks added, “Start the relationship off right; have a written contract with payment specifics and have that conversation upfront. A lot of suppliers and a lot of companies are up for doing just that. You don’t get anything unless you ask.”

Stand out in a digital world: Digital marketing is inexpensive and in a climate where marketing budgets have been slashed, more businesses are trying to take advantage of this option. Some participants have been able to cut through the clutter of trying to get noticed, and actually get noticed by doing things to stand out from the crowd. One participant suggested sending out hand written letters or postcards to clients and another said it’s a good idea to serve on a non-profit board to give you equal footing with other influential members in your industry. One participant sends out posters and flyers to advertise his business.

Interview questions and techniques: Over half of the participants at this roundtable said they are hiring right now – positions ranging from assistants to COOs. Many participants agreed that while there is a large talent pool to pick from, it is daunting to find the right employee for your company. It may be tempting to hire someone with a great pedigree who, thanks to the recession, is now available for below market salary. But that may be a risk to your company culture. So how have the participants taken advantage of the available talent and maintain culture? Questions they ask potential hires include: What will they do to improve themselves? Do they volunteer? Do they like to help people, and how?

Asking questions to gauge a new hire’s individual goals helps gauge their personal character – a trait that is almost as important as their job knowledge and skill set in terms of keeping a well balanced company culture. If they go the extra mile in their own lives to help others, they will most likely do so for the benefit of your company.

One participant goes as far as to send potential hires to a training seminar and ask what they learned from it. While this is an added expense, it’s a good way to gauge the candidate’s motivation in terms of going the extra mile before getting hired. The business owner asks how the candidate will be able to implement what they learned in the position they are applying for. Another participant has each person in the company interview a new hire to ensure that the present employees feel happy and comfortable with a candidate, as well as be involved in the hiring process.

Always be hiring: The one hiring strategy that all participants agreed on was to constantly be on the lookout for talent, even if you don’t have a position open at the moment. The participants also agreed that asking trusted peers, employees, colleagues and other advisors for employee referrals is a big help in locating a superstar employee. Business owners should also constantly interview. This will not only help you keep your interviewing skills sharp, but you might find a great hire, even when you are not actively searching for one.