Posts Tagged ‘Now what? How to manage for the unexpected’

Now what? How to manage for the unexpected

Posted by Joel pate in Banks, Business, Credit Repair, Uncategorized. Tagged: , , , , , , , , ,

If you’re like most in the credit business, the first-time home buyer tax credit was good for your bottom line.

Really good.

Now let me ask you: Was the boost to your business expected or unexpected?

Usually everyone says that they expect a good thing to happen to them so I’ll bet your answer is, “Oh yea, I expected that.”

But did you expect the drop-off in business when the tax credit expired?

Here’s the answer I usually get: “I thought in the back of my mind that business could drop off but I never expected it to drop off this much.” Is that you?

Your business, your family, your life, is an organization. Organizations require management. There are a number of aspects of management that you need to address. One of them is what I call, “The Unexpected.”

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How to manage for “The Unexpected”

Unexpected events come in all sizes. Some are events that make you more money. Many cost you money. All of them are surprises that need to be examined and understood. In the example of the boon to your business created by this particular outside market driven condition, how did you respond?

If you’re like most, and I include myself in this category, we didn’t do anything. We patted ourselves on the back and marveled at how well we were doing while other companies were struggling. We were so smart – or so we thought! Worse yet, we began to think that the new flow of business was normal. It’s easy to think that you did something that caused an increase in business.

So, not only did the drop in business catch many of us unaware, but the lull in marketing during the boon caused business to be even worse when the tax credit expired. During the good times, many companies stopped marketing, quit growing their referral sources and didn’t expand their effort to attract new customers. Why? It’s hard to do what needs to be done all the time.

But it seems especially difficult to work on your organization when an outside influence is driving the business.

Proper management of your organization requires that you soberly recognize when an outside influence is driving your business and not be drunk on the wine of this success.

Proper management of your organization requires that you soberly recognize when an outside influence is driving your business and not be drunk on the wine of this success.

Rising star, falling star and the lesson learned

Let me give you another example. A real estate agent who came to work for me in 1986 went through a similar experience. The first three months she was in business, she sold five properties. That was unheard of in our market in 1986. She was a rock star. She won an award. She thought she was really great.

So, what was the problem? All five of the transactions were from a pent up demand from her family. A brother sold his house. A son purchased a home. A cousin listed his building with her, etc. All of her clients were created by an outside influence and not by her organization.

Since these transactions were not created by her organization, her marketing, her networking effort or here late nights of blood, sweat and tears but from an outside influence, she was lulled into thinking how easy it is to be in this business. Therefore, she established her perception of what it took to succeed in the business without understanding that the source of business had been from an outside influence.

She was of course disappointed when the evaporation of the outside influence suddenly ended her stardom and her business. She wasn’t prepared to adjust her thinking and as a result her sales career came to an end within one year.

While this is a true story, it is perhaps an over exaggeration of what you are facing. So, don’t overlook the important and fundamental principle.

The question remains for you and for me to consider: Now that this particular outside influence has caused an unexpected drop in business, will we be more prepared next time to actually see the influence for what it is? The answer: Only if we increase our ability to manage our organization.

To your success,