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By Alan Oakes

Where do you go now?

I t a time when.there may be a glimmer of hope that we've reached the baseline of an r llmproved market, now is the time to start planning for the aftermath. I have always said that if you survive through the tsunami we hive gone through, at some point there will be decent business again for those left behind.

There is no doubt that all of us have been forced to look at our business performance these past two to three years with a more detailed and critical eye than ever before. While our magazine readership is made up of companies of all sizes, the majority are not large enough to have access to a team of business analysts or outside consultints. So perhaps ie need_to occasionally be reminded of time-tested business principles that challenge the way we should think about our businesses. Good mentors or advisors are often invaluable in driving you to evaluate areas of your business and to challenge yourself in areas that you may not feel strong enough to tackle. Having a second set of eyes can help you through iifficult decisions that you do not feel comfortable discussing internally.'Iiut choosJ your advisors wisely. There are some pretty well-paid idiots out there whoian easily take you down the wrong path.

while we are heavily focused on handling day-to-day operations and putting out fires, we do need to have a plan to guide and drive ourbusineisei along with actions needed by whom and by when' A plan without accountability, goals and speiific measurement pointi will never succeed. I remember one of my worst business decisibns was about l5 yeais ago in the book publishing industry. I was coerced into developing a new software p.oau.t. ip front' I didn't agree with the decision. I was c.e.o., but the,buiiness owner was insistent. it was a new industry for us, and I was not sure we had the talent intemally to produce and market the product. But, I set up the teams, goals and budgets, and we happiiy got under way' As we developed the product, I realized it was a product I myself wanied and needed. As we started seeing beta copies, I began to believe in the produci and started dreaming of all the new dollars it would bring in. I was convinced that we had a winner, despite the iact that there was a clearly established No. I in this space.

But this was not our normal business, and we didn't understand all the pitfalls. The product looked great, but we all agreed if we were to win we needed to improve it. Durins that process. we generated great ideas on how to extend the reach of the product-irsuei that needed to be worked on before we launched. Delays started building, costs mounted, but we still believed we had a winner. In the meantime, new competing pioducts came out, our retail price became no longer feasible, and we had not done "nougfi extemally to determine if we would get bought by the chains and what we would have to give to buy shelf space. The end result, after over $l million of development costs. *u. t-hut I finaily and belatedly called a halt and wrote the project off. The moral was that we should never have started in the first place. We had fallen in love with the product and become too emotionally involved' We had not been objective enough nor understood how competitive the market was. More importantly, our egos led us to believe that being No. I in our own space was going to mean something in the new space. It meant diddlysquat!

As you can see, understanding financials and having time for critical planning along with real-cost analysis are critical for every business. LaCk of anention to th! fundamentals has destroyed many a company, large and small. Moreover, being product driven-as opposed to market driven-usually leads to abject failure.

Analyze your products and services. Hopefuly you have a cash cow that is in demand and makes you m.rn"y. This is where to spend your investment and marketing doilars. Don't waste money on propping up dead or dying products. Invest in and protect what makes you money. Understand how it makes you money, and do every_ www.building-products.com

A publication of Cutler Publishing 4500 Campus Dr., Ste.480, Newport Beach, CA 92660

PublisherAlan 0akes ajoakes@aol.com

Publisher Emeritus David Cufler

Editor David Koenig dkoenig@building-products.com

Associate Editor Karen Debats kdebats@building-products.com

Contributing Editors

Dwight Cunan, Carla Waldemar, James Olsen, Jay Tompt

Advertising Sales Manager Chuck Casey ccasey@buildi ng-products.com

Administration Director/Secretary Marie Oakes mfpoakes@aol.com

Circulation Manager Heather Kelly hkelly@building-products.com

How to Advertise

WEST, MIDWEST, SOUTHEAST Chuck Casey Phone (949) 852-1990 Fax 949-852-0231 ccasey@building-products.com

NORTHEAST Paul Mummoto 404 Princeton Ave., Brick, N.J. 08724 Phone (732) 899-8102 Fax 732-899-2758 mummolop@comcast.net

ONLINE Alan Oakes www.building-products.com

Phone (949) 852-1990 Fax 949-852-0231 ajoakes@aol.com

CLASSIFIED David Koenig Phone (949) 852-1990 Fax 949-852-0231 dkoenig@building-products.com

How to Subscribe

SUBSCRIPTIONS Heather Keily

Phone (949) 852-1990 Fax 949-852-0231 hkelly@building-products.com

0rsend a check to 4500 Camous Dr.. Ste. 480, Newport Beach, CA 92660

U.S.A.: One yeat (12 issues), 922 Two years, $36 Three years, $S0

Lastly, understand what your priorities really are. Times change, and your way of doing business may have to change as well. Be open thing possible to defend your turf. to learning from others, and that cannot be done in a vacuum. No one is an expert in all aspects of business. Learning whit others are doing and how should be a vital practice to help you succeed in the future.

Alan Oakes, Publisher ajoakes@aol.com

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