A Playbook for Success During Inflationary and Turbulent Times: 2023-2024

Introduction

Having been advisors and investors in technology-enabled service businesses since 2001, Ephor Group, Inc. has participated in and provided guidance and governance over numerous inflationary, politically disruptive, and “turbulent” economic cycles.

As a result, we have done a lot and learned a lot over our nearly 21 years of operating and investing in the sector.

Our Strategic Practice Lead, Garry E. Meier has been actively involved in advising the US government as a Senior Advisor, now for over 10 years, to address the needs of the small business sector as our economy and political factors change and evolve. His past guidance to the government during the COVID Pandemic was reflected in many of the attributes of the CARES ACT, the SBA EIDL Loan, ERTC (Employee Retention Credit ) programs, in addition to many State level programs, especially in the states of Texas and Florida.

Based on that knowledge and perspective, Ephor has created the below information and guidance document to assist you as you execute your business initiatives in 2024 and during these turbulent and uncertain times.

The Playbook Includes 6 Chapters as Presented Below

 

1. Evaluate, CHANGE, Expand, And Enhance Strategy Components

  • Re-examine “disruptive” market dynamics of your specific addressable market.

  • Conduct competent/honest SWOT analyses and develop aggressive action plans to improve.

  • Re-evaluate & implement product management fundamentals that often require changes and business processes improvements.

  • Engage “all” customer, distribution, and service delivery partners in your “corrective action initiatives for difficult times”: garner their feedback and obtain outsiders’ perspectives

  • Have an outside, sector-knowledgeable advisor or thought leader evaluate/review the assumptions and initiates outlined above

2. Refine the Business Model to Align With “the Disruptive and Economic Market Conditions and Strategy Elements

  • Create a workforce plan and human capital needs analysis, to ensure your organization is highly skilled to execute

  • Create a risk management plan (People, Process, Capital, Threats)

  • Re-examine all opportunities and functions to “Outsource”: how and when; it is imperative to create a more variable costing business model resulting in less fixed cost and a lower risk profile.

  • Identify and Implement initiatives to increase scalability and productivity & how to measure the improvement

  • Enhance market differentiation concepts and messaging

3. Implement or Enhance Management Science

  • What are the top eight to ten non-financial Measurements and Metrics that evaluate and monitor how productive, efficient, and how scalable business processes are?

  • Communicate goals and financial performance to all employees. Reporting on performance, whether monthly or quarterly, hold everyone accountable (transparency of metric-driven performance is critical to creating a Perform Culture during “Disruptive Times”)

  • Conduct weekly metrics discussions. How well people are performing on a daily and weekly basis is the start of employee-level accountability, and for the company to return to maximized profitability

  • Ensure the company has Cross-Functional Measurements and Metrics

4. Further Differentiate Your Product/Services Offering

  • Accelerate and enhance brand equity and brand awareness programs.

  • Further identify and “carve out” your niche including:

    • Highly define the “ideal client” attributes

  • Refine Messaging: to include “Disruptive Times” Messaging

  • Be known for something special:

    • credible and compelling references (“Raving Fans,” 3rd party testimonials and assurances)

    • be found online and in social media venues

    • brand promise

    • organizational culture

    • superior customer service

5. Create A Product and Distribution Portfolio of Revenue Venues

Only put a salesperson face-to-face with a prospect when there is a 70% chance or higher of “closing the sale”.

  • Step One: Increase the productivity of direct sales by having effective marketing that provides high-quality probability leads. DO NOT PUT THE REVENUE FUTURE OF YOUR BUSINESS ENTIRELY DEPENDENT ON DIRECT SALES PEOPLE

  • Step Two: Identify additional and new channel partners and distribution Channels that have the same “near perfect client profile”

  • Step Three: Create strategic alliances with a select few: <2

 

6. Connect Compensation to Strategy and Business Objectives

  • Tie cash compensation closely, in terms of time, to the successful and desired outcome

  • Enhance variable pay components

  • Implement a “Total Compensation Concept” (not only cash)

  • Consider Equity-based incentive programs, based upon a strategic objective being achieved, not tactical execution objectives

    • At a minimum have a long-term aspect to your total compensation plan for retention purposes and employee financial wellness.

  • Ensure Significant rewards for 'A&B Players’

  • Declare that Mediocrity performance is “THE ENEMY”

Conclusions and Guidance

At Ephor Group, Inc. we are currently and expeditiously implementing the above “Playbook for Success During Turbulent Times” in all 8 of our current investments and clients, along with 8 former clients, who have recently reached out to us for further guidance and expertise.

We have for years now stated and learned that CEO Entrepreneur’s job is nearly an impossible task. Clearly, now with all of us having to cope with these most “Difficult & Disruptive Times” it only makes the CEO task more impossible! 

To conclude, we leave you with the following Leadership Guidance:

1. MEDIOCRITY is the first step to failure in challenging times.

2. CHANGE and a commitment to improvement is required to “survive & thrive” in these challenging times.

3. The CEO Entrepreneur requires external support and skill augmentation to succeed in these difficult and complex times.

4. Useful Growth Equity Capital will only be accessible to the most efficient and “best” business models.