Many Businesses are doing Great!

SOME BUSINESSES ARE THRIVING... HOW IS YOURS DOING?

Even in these recessionary times, many businesses have continued to chalk up healthy sales increases and maintain or even improve their bottom line. In this News Update we look at who they are and why they're doing well when so many businesses are hurting.

First, let’s dispel some myths which often serve to obscure the underlying issues. The first Myth is that this is either a "Big Company" or a "Small Company" problem - it’s neither! Both have been affected by the recession and yet many have done well. For the most recent Quarter (to Dec '09), Google reported Sales growth of 17% and a profit increase of 30% over the prior year, while Apple's numbers were a staggering 32% and 49.8% respectively. As for Small Businesses... according to INC. Magazine's listing of the top 500 Private companies in 2009, many small companies, like Media Trust in NY, Snap Fitness in MN and Kiva Systems in MA had sales growth ranging from 5,900% to over 9,000%! The data for Canada is just as compelling.... nearly half of Profit 100's top ranked companies had sales of less than $12 million, but with growth of up to 1,100%.

The Second Myth is that problems are industry driven and that only companies in a few "lucky" industries are doing well. That just isn't true... of the three companies in the Inc. list, one is in Advertising, another in Fitness and Health and the third is a Logistics and Transportation company.

The third Myth is that manufacturing is dead - and that only low-wage service industry companies will survive. During the last 12 months, eight of the top 30 industries in growth were manufacturing or directly related and experienced healthy double digit sales increases. The rest were equally divided between service and non-service industries such as transportation and logistics, telecommunications, technology and waste management.

WHAT SUCCESSFUL COMPANIES ARE DOING RIGHT AND YOU CAN DO TOO!

Perhaps the best way to identify what companies are doing right is to look at some real-life examples. This week we focus on a company that was the basis of a case study for the Industrial Extension Service Department at North Carolina State University:

“Cable Assembly, LLC, in Graham, NC can barely keep up with explosive growth and so many new orders that the 40,000 square foot facility can barely contain them. While the US economy flounders and many manufacturing orders drop, Cable Assembly had to add a second shift.
Their success lies with three strategic directions:
• First, they excel in a niche market making complex cables for companies requiring
hundreds, not thousands, in a high mix (they make up to 12,000 different parts), low volume assembly.
• Second, the customer relationship is so important that clients often call the plant manager in charge of their project directly on his cell phone, without going through a call center or a sales office.
• And third, they’ve embraced a lean culture from management to floor, thanks to a
jump start with IES lean specialists.

'What can I say? We’re doing great in a lousy economy,' said Jon H. Clements, general manager.

Cable Assembly makes their highly specialized cables for General Electric’s industrial windmills and for Thomas Built school buses. About 30 companies depend on Cable Assembly, and some have been doing so since the company began in 1988. Clements expects to do $13 million in sales this year, up from $8 million a year ago." – IES, NC State University

Even though the company is a highly specialized manufacturer of an industrial product, what they're practicing so effectively is applicable to every business and industry: i. Identify and clearly understand what your market is and who your customers are ii. Communicate clearly and frequently with your customers and make yourself available to deal with issues or concerns immediately iii. Use the latest technology to ensure you're performing at peak productivity.

Phil Richardson, President
BizGrowth Coaching Inc.