Clients of Business Navigators are classified in a number of ways.
• Active– We are still meeting on a continuing basis either monthly or quarterly.
• Graduated – We are no longer meeting but the inactivity is caused by the realization they no longer need my visits to continue the processes we created together. They have learned to ‘Fish for themselves’ and while I miss them I’m proud to have helped them.
• Terminated– Unilaterally it has been decided to not continue the process. I’ve fired about 8 companies in the past 21 years and have been fired about 4 times.
Recently a new term has come up. I’ve decided to call it Hibernation. This classification is deactivation caused by events out of our control.
The Chicago based electrical contractor I had worked with on a monthly basis for over six years had to stop our meetings because of economic conditions. The office staff was reduced from five to two. The field workers were reduced by 50% and Business Navigators was no longer a monthly visitor. However, the owner still valued what we had done together and from time to time when I was passing through Chicago we’d have dinner and great conversations. They were hibernating.
This last Thursday they came out of hibernation and we started our first ‘Reverse-Flow’ meetings once again.
While the company had ended 2010 with a significant loss by the end of February 2011 they had added 3 more field workers and currently enjoy a Net Profit of 30%. We anticipate that profit will settle down to 12% or 15% by June and that beats an industry average of 1.5% to 2.5%.
Bears hibernate when it gets too cold to move easily. Spring is coming.
It looks like a bear market is on its way.