STRATEGY
Beat the recession
When the
going gets
tough
John Styring, CEO at
Igloo Books, discusses
how to get ahead during
a slow-growth recovery
and be ready to win
when good times return
W
We were flexible enough
to put it into action, and
we played to our strengths.
Finding a solution that ensures
your business can make it
through a recession is a bit like
solving a Rubik’s cube; once
the potential problems are
assessed, the final stages can
be relatively simple.
hat doesn’t
kill you
makes you
stronger. A
recession can
be one of the toughest ways
of discovering how true this
saying can be. So how do
you make sure your company
succeeds when times are hard?
Having the right strategy,
remaining flexible and playing to
your strengths can protect your
business against a downturn and
lead you to embrace the changes
that it brings.
By the late 2000s,
IglooBooks was coming off
a decade of unprecedented
growth. The business has
since grown from a turnover
of £5 million in 2008 to £20
million in 2014. In that time,
the UK economy experienced
a double-dip recession
that would send many of
Britain’s big commercial
publishers reeling.
We did this by having a solid
stra tegy to beat the multiple
challenges of the recession.
THE STRATEGY
In the publishing world,
the credit crunch meant
consumers still wanted to
read, but were looking for
ways to save money. Our
great value titles were the
solution for a public that had
not lost the desire to read
but needed to watch what
they spent.
Take a look from the
consumer’s perspective at
the areas likely to be affected
by their reduced spending
power. In my industry, some
of the biggest hits in recent
years were taken by maps
and atlases because of the
rising popularity of sat-nav
systems, computer books
because the information is
now readily available online
and as such became quickly
obsolete, and textbook sales
declined for the same reason.
The business outlook in these
areas was dire as consumers
pulled back on unnecessary
spending and went online.
SECTION SPONSOR
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So do you need a
strategy for recession? The
fundamental tactic you need
during a recession is to have a
unique proposition, one that is
going to make customers still
want to pay for your service even
when money is tight. It’s never
a bad idea to align yourselves
with successful companies and
retailers who will remain reliable
and help you to ride the wave.
During a recession, certain
types of businesses succeed,
and it’s important to couple
your organisation with those
companies and grow with them.
In the last recession, different
types of companies succeeded.
You’ve got the likes of LIDL
and Aldi, which offer value,
and companies like
John Lewis which is
renowned for service.
Our proposition –
and my best tip to
other businesses
– is to offer the
customer both.
If you do that,
they’ll always
come back, and you
will have loyal fans of
your product or service
when the recession ends.
Simplify the Law
TM
Companies
with clear
organisational
structures
tend to be
more flexible,
so keep your
business
structure
simple to stay
nimble
talkbusinessmagazine.co.uk 57
Do without lawyers
29/08/2014 12:15