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Proactive Business Downsizing and Strategic Marketing

1:04
16:20
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How I survived the LAST economic collapse

What happens here

The speaker explains his first strategy from 2007: proactively reducing the size of his business by 50%. He gathered his team and communicated the need to eliminate any employees who were not performing at peak levels, effectively keeping only the 'best of the best'. He emphasizes that despite cutting the business in half, his profits remained the same because he was able to 'cherry-pick' the most profitable jobs. Crucially, he did not reduce his marketing efforts, instead maintaining them at a 'status quo' or even increasing them, treating marketing as a lifeline to ensure a steady stream of job opportunities.

Goal: Optimize business operations and maintain market presence for profitability during economic shifts.

Tools and materials

  • Business Records N/A — Analyzing business performance and identifying profitable segments or employees
  • Team Members N/A — The workforce that needs to be evaluated and managed
  • Red Apple N/A — Visual aid to represent 'cherry-picking' profitable jobs

What they say

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knowledge bombs let's do it in 2007 the writing was on the wall and I felt the Winds of Change coming and I sat down with my crew and I had a lot of people working for me my company was growing astronomically because in 2007 it was all boom times it was grow as fast as you can grow get as much work done as you possibly can get done as quickly as you can get it done under any means possible does that sound like what's happening right now I think it is now growing in those times is not difficult it's not very tough you just got to pick up the phone and say yes I'll be there but in 2008 I seen that writing on the wall that there was a crash coming and the Crash hit hard I'm talking about companies that were doing 50 plus million dollar a year in business disappearing overnight they no longer existed and that wasn't just an isolated incident I'm talking about company after company after company disappearing in 2008 but what I did in 2007 is I sat down with my top Echelon of guys and I said next year we're cutting our business in half and they all looked at me like I was smoking something funny and I said listen this is what we're going to do we're going to eliminate every single person from our company that isn't performing at Peak Performance we're going to do the first thing is we are going to keep the best of the best guys on board and in 2008 that's what we did I cut before the crash came I had cut all of my extraneous labor that wasn't performing up to standards and eliminated them and then the second thing I did was I marketed like I was a hungry madman like I was a wolf I didn't slow down on my marketing because when time get tough and Market drops down marketing is the key to keeping your phone ringing so even though my plan was to intentionally cut the business by more than 50% I marketed like I was going to grow double basically what I did was I kept my marketing status quo okay so I was marketing like I was way up here my intentions were to have a company down here and what this allowed me to do was very strategically cherry pick I would go up out and find the best of the best the ripest fruit on the vine and those jobs and only those jobs were the ones that I took now I marketed like I'm way up here which gave me a wide choice of jobs where everybody else was cutting back cutting back cutting back you never cut back on your marketing unless you don't like your phone ringing and you don't like having job options cherry-picking your jobs is an…

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