SSSPTM:Surviving the Worst Day of Your Life in Business

Several weeks ago, a former client called to tell me about his "worst day in business" since inception 20 years ago. The firm had received notification that after litigating a case for almost two years (a case they should have won), they lost and lost big - nearly a half million dollars for this small practice!

Without getting into whether they could appeal or not, etc., the immediate focus had to be on "What next?" What guidance can I offer in such situations? Here’s what I’ve observed, and here are the steps my client had to take so he and his firm could survive and move forward:

First, you have to acknowledge the Shock (S) of it all. Whether you lose a case, lose a project, lose a partner or are undercut in a deal, you must first acknowledge and get through the Shock. This takes time, and nothing can change that.

Second, you have to acknowledge your own personal Sadness (S). In my client's case, he was in bed sick for nearly two weeks. Again, time is the only cure, but know that like the stock market crash of the 1920s or the economic downturn we have all weathered, there is a path forward. Having a peer network, business management consultant or advisor can help you avoid rash decisions during this time.

The final (S) is Struggle: the "difficult" piece. This is the move from "What do I now?" to “This is my path forward.” Seek multiple perspectives—financial, legal, human resources—while knowing there isn't always a "right" answer, there's just “What's next.” It may not be what you want—laying off staff, realigning operations, notifying clients—but your larger vision should remain.

Peace (P) is the place you will arrive at, having struggled with your options and weighed them objectively going forward. Then comes the challenge of Transition (T). Have a plan. It is not enough to have made it through the worst day in business. You have to have a plan to see your way to solvency or success. Write it out, empower your people and your staff and MOVE (M) FORWARD.

Move forward knowing that each day will become incrementally better than the last, if you have a plan, and strong advice and counsel. Have you had your worst day in business? If so, how did you survive?

Karen Compton, CPSM. Karen Compton is principal of A3K Consulting (Glendale, CA), a business development and strategic planning firm specializing in the architecture, engineering and construction industries. Ms. Compton is also the founder of Industry Speaks™, a web-based business-to-business portal that connects AEC firms with experienced consultants, provides peer reviews of consultants, reports on key industry trends, and publishes expert reviews of professional courses and books. Contact her at kcompton@a3kconsulting.com.

Follow You Where?

Even our readers who aren’t familiar with the Bible can appreciate this analogy. The Bible speaks of a time when the Lord told Abraham to pick up his belongings and be led to a land of promise. Abraham picked up everything he had without any idea where he was going, and followed. The punch line is: You are not the Lord! You cannot ask your staff to follow you without communicating a plan and without direction.

A Business Plan is a necessary part of your business. It is not optional. It defines where you want to go as a business, and the needs and expectations of your staff as you all set out on this journey. Beyond these benefits, it prioritizes what you need to do and identifies milestones for achievement.

I have a wonderful and very successful client whose discipline shall remain unnamed. It really isn’t relevant. What is relevant is that he is CEO of a firm that does a lot of work with a particular public agency. Like most owners, he is a seller-doer. He sells the work and oversees its delivery back to his clients. On any given day, he deals with everything from lines of credit, to client meetings, new business endeavors, service delivery and mentoring. Sound familiar? It’s your life and mine. The problem is, as I explained to him, that he will go about the day-to-day requirements of running a business in the years ahead and never move any closer to the objectives he wants to achieve.

Do a Business Plan. You say, “But that takes too much time!” To which I retort, “Which is worse: spending 10 hours planning your future or waking up in ten years realizing you never achieved it?”

Learn from my client. He invested time in the development of a business plan. He defined priorities for himself and his staff because he finally focused on the larger goal: positioning his firm for an acquisition. Guess what? He’s well into his strategy and has grown his revenue and client base by 15% percent in what can only be called a bad economy. He didn’t do it because he was large and had a lot of resources. He did it because he took the time to plan for it. You can, too!

Karen Compton, CPSM. Karen Compton is principal of A3K Consulting (Glendale, CA), a business development and strategic planning firm specializing in the architecture, engineering and construction industries. Ms. Compton is also the founder of Industry Speaks™, a web-based business-to-business portal that connects AEC firms with experienced consultants, provides peer reviews of consultants, reports on key industry trends, and publishes expert reviews of professional courses and books. Contact her at kcompton@a3kconsulting.com.