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Growing Revenue in a Recessionary Economy
Growing Revenue in a Recessionary Economy…
In economics, a recession is a business cycle contraction, a
general slowdown in economic activity.
Growing Revenue in a Recessionary Economy…
Where did the money go?
Growing Revenue in a Recessionary Economy…
10.45%
Growing Revenue in a Recessionary Economy…
15.61%
Growing Revenue in a Recessionary Economy…
11.15%
Growing Revenue in a Recessionary Economy…
6.37%
Growing Revenue in a Recessionary Economy…
12.99%
Growing Revenue in a Recessionary Economy…
34.43%
Growing Revenue in a Recessionary Economy…
3.52%
Growing Revenue in a Recessionary Economy…
•Step 1: Find hidden savings•Step 2: Invest in efficiency •Step 3: Scalability •Step 3: Additional revenue streams
Growing Revenue in a Recessionary Economy…
Opportunities?
Growing Revenue in a Recessionary Economy…
Weak competitorsHard assets may cost lessSoft assets may cost less
Financing can be more favorableReevaluate business plan
Reevaluate marketMutual opportunities
Look for new opportunities – leveraging existing assets
Growing Revenue in a Recessionary Economy…
Existing assets –
– Fleet– Property
Assets or liabilities?
Growing Revenue in a Recessionary Economy…
“REAL” ASSETS• Management
– Marketing• Current market presence• Missing market
– Financial• Pricing strategy• Strong negotiating skills • Good cash flow management• Good credit• Recruiting v. hiring
Growing Revenue in a Recessionary Economy…
– Safety• Training• Supervision • Retraining• Recruiting v. hiring
– Maintenance • Skilled shop employees • Low vehicle out-of-service rate• Good cash flow management• Good credit• Recruiting v. hiring
Growing Revenue in a Recessionary Economy…
– Logistics management• Strong utilization of:
– Manpower– Equipment
• Value to client– Favorable pricing– Seen as having expertise– Profitable
Growing Revenue in a Recessionary Economy…
Growing Revenue in a Recessionary Economy…
What was Circuit City’s assets?–Management
»Finance»Creditworthy »Lease Departments»Marketing»Logistics»Real Estate
Viacom - $8.2 Billion
Growing Revenue in a Recessionary Economy…
What was former Waste Management Executive’s assets?
–Management»Finance»Creditworthy »Lease Departments»Marketing»Logistics»Real Estate
Growing Revenue in a Recessionary Economy…
Greyhound Financial Capital Corporation
PREMIER CRUISE LINE
Growing Revenue in a Recessionary Economy…
“REAL” ASSETS• Management
– Marketing• Current market presence• Missing market
– Financial• Pricing strategy• Strong negotiating skills • Good cash flow management• Good credit• Recruiting v. hiring
Growing Revenue in a Recessionary Economy…
– Safety• Training• Supervision • Retraining• Recruiting v. hiring
– Maintenance • Skilled shop employees • Low vehicle out-of-service rate• Good cash flow management• Good credit• Recruiting v. hiring
Growing Revenue in a Recessionary Economy…
• Venues– Cable– Internet– Specialty periodicals– Salesperson– Conventions– Social groups, PTA,
etc.
Marketing
Growing Revenue in a Recessionary Economy…
• Service• Executives• Corporate• Employee shuttle• Paratransit• Transit• School
• Specialty• New• Activity
Marketing
• Current market presence
• Missing market
Growing Revenue in a Recessionary Economy…
Financial
• Pricing strategy• Strong negotiating
skills • Good cash flow
management• Good credit• Recruiting v. hiring
Company Acquisition• Similar• DifferentVehicle Acquisition• Buy – Sell• Operationally Investment• Short-term• Longer –termEmployees• Management
• Safety• Financial
• Drivers• Better PSPs• Metter MVRs• Customer Skills
Growing Revenue in a Recessionary Economy…
Leverage safety record• Better insurance rates• Larger deductibles• Captive
Better Recruiting• Drivers want to work
Safety
• Training• Supervision • Retraining• Recruiting v. hiring
Growing Revenue in a Recessionary Economy…
Accept outside work• Other operators• Transit• Other government
Parts inventory• Salvage• Discontinued
Training• Other operators
Recruit• Better mechanics
• Improved shop management
Maintenance
• Skilled shop employees
• Low vehicle out-of-service rate
• Good cash flow management
• Good credit• Recruiting v. hiring
Growing Revenue in a Recessionary Economy…
Special events
Convention planning
Government planning
Logistics management• Strong utilization of:
– Manpower– Equipment
Growing Revenue in a Recessionary Economy…
1.It causes you to get more creative.
2.It forces you to make the tough decisions.
3.It thins out the competition.
4.It makes you realize you can’t take anything for granted.
5.It reminds you that real wealth isn’t about the stuff you own.
Growing Revenue in a Recessionary Economy…
6. It fosters out-of-the-box thinking.
7. It makes it easier to abandon business-
as-usual.
8. It brings you back to the basics.
9. It accelerates change.
10. It causes you to be less wasteful.
Growing Revenue in a Recessionary Economy…
The goal of a business during an economic recession should be to evolve during and come out on the other side stronger and less susceptible.
Thank you!
