Today, I am starting a new series of interviews with some of the leading business minds in the nation. Today’s interview is with Jim Barrood, Executive Director of Fairleigh Dickenson University’s Rothman Institute of Entrepreneurial Studies.
AK - Jim, you’ve interviewed some of the world’s most successful CEOs and entrepreneurs, can you identify for us 3 common elements that these folks share?
JB - Determination and passion to follow through, whether in a new venture, difficult economic periods, merger, it’s about execution. 2. Building a team of loyal and smarter people than you are who can be trusted with implementing your plan / vision. 3. Ability to lead and motivate people via strong relationships.
AK - With regard to business growth and the current state of the economy, what are you seeing right now in terms of how businesses are faring?
JB - In general the picture is grim. We are amidst a perfect storm of negative factors ranging from high energy prices, higher costs, depressed real estate, rising foreclosures, stock market turbulence, lower net worth, higher debt and thus lower consumer confidence, resulting in economic insecurity and less spending by consumers and businesses alike, resulting in a domino effect that is slowing the economy. Everyone is tightening his belts. However, it is important to note that some sectors are faring well, like those relating to the energy sector and to a lesser degree healthcare; exporting companies are also seeing increased opportunity with the devalued dollar.
AK - With the fragmentation of media and with respect to advertising, how are businesses leveraging new communications models to grow market share?
JB - Most are not investing as they should in new media. Granted companies must be willing to take a few limited risks and engage in trial and error experimentation. As the economy continues its downward spiral, I expect more small companies to dedicate the time, if not much money, to try to leverage the marketing opportunities in this sector because it’s important to stay out in front of your customers and markets during times like this. Customers will remember that when the economic climate turns and will likely choose you over the competition, if your competitor chooses to be out of the market during this time.
AK - Where does innovation fit in this equation?
JB - Companies will need to continue to invest in innovation efforts to introduce new products and services to stay ahead of the global competition as well as a way to cut costs on their back end operations. Marketing and public relations is undergoing a radical change due to the internet, and many businesses will need to figure out how to innovate in this space or risk loosing market share.
AK - Let’s talk marketing in specifics here. What can businesses do to stay relevant and perhaps increase market share in a slowing economy?
JB - Take this opportunity to better understand your customer needs and see what else you can offer them in the way of new products and services. Also, investigate if there are other avenues of reaching your market. If you can diversify your offerings to target an under served market or leverage your brand, reputation, etc. to upsell or cross sell your current customers, that may ultimately be a successful strategy and yield more revenues in the short term and contribute to significant long term growth. Also, study your marketing efforts and see what is truly working; modify your plan and invest in what is working best.
AK - What business book are you reading right now?
JB - The Execution Premium by Kaplan and Norton
