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E&Y Surveyed top Entrepreneurs to understand their current plans in this rough patch and their answers are clear - stay focused, innovate, invest, serve customers. business is no different in tough times.
Ernst and Young"s Top Entrepreneurs Keep Their Vision Despite Tough Conditions
Entrepreneurs are hardy folks. Undeterred by current circumstances, they are entirely focused on their vision and a rosier tomorrow.
And in this deep and difficult recession, Ernst & Young found that entrepreneur-driven companies are still looking for growth and opportunity in these tough times by adapting their operating methods to set themselves up for market leadership when the economy does turn to the upside.
Ernst & Young surveyed the 250 winners of the 2009 Entrepreneur Of The Year program, and came up with these valuable findings from respondents:
Growth remains number one. Despite the downturn, 78% are still pursuing growth opportunities.
Clearly customers are always right. 78% have increased their focus on customer satisfaction and loyalty. 75% have plans to expand into new customer segments/ geographies.
Cash is king. However, only a fourth were still seeking to secure their cash position.
Maintaining innovation is critical. 60% wish to implement technology for higher business efficiency or accelerated growth.
Some M&A in the offing. 49% are thinking of purchasing distressed competitors, and 55% think the reason for such transactions would be to add strategic value as well as business growth.
Risk is being scrutinized. 37% place higher emphasis on geographic risk exposure
Act now. 45% are increasing the how quickly they are making decisions since the economic downturn.
Employee motivation. 57% are pushing their communication and transparency harder to retain employees. 46% are using the downturn as an opportunity to fill key strategic posts.
Entrepreneurs are some different as E&Y finds from other mature multinational firms in having higher emphasis on growth and acquisitions.
"This survey confirms that, even in the worst times, future market leaders are looking for growth…. Such trailblazers will be vital to the world"s economic recovery." said Greg Ericksen, Global Vice Chair, Strategic Growth Markets, Ernst & Young.
We can recall hearing of many studies which indicate that the fastest-growth companies are born in a recession. Tough economic conditions provide the breeding ground for innovative, cost-focused, nimble and niche-focused companies. Why? Recessions mean lower competition, recessions means more focus on cash flows and recessions mean creativity to secure niches and gain revenues from demanding customers. Its not easy at all, since demand dries up totally and it calls upon guts and will to keep going in the face of current depression and hopes for a better tomorrow.
But E&Y"s selection of visionary entrepreneurs do stand out for a key reason. They seem to look past the cloud of economic downturn and to the silver lining. Growth and customers are the lifeblood of any business, and by staying focused on what brings in the cash into the door, this mindset lays out a good game plan for all business owners to survive and thrive.
When things do turn around, look for these terrific companies run by E&Y Entrepreneurs of the Year to show the path to success.
Thursday, December 3, 2009
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