This is one of a series of articles in which we have been exploring alternative ways in which a small business can take steps to protect themselves against the challenges of the economic downturn.

Tip Eleven: Reciprocity – What can you offer a company - that doesn’t cost you much - in return for something you value? (see article entitled A Crazy Idea for Small Business Survival in Recession?)

Tip Twelve: Communities – Join free or inexpensive online or personal small business community portals. You may be able to forge new and valuable relationships with companies in a similar position and find ways to support each other. You may even pick up some new business.

Tip Thirteen: Cashflow – It’s never been more vital to look at again at your accounts receivable systems and operations. You need to find ways to invoice quicker, and get the money in faster. Think of incentives, carrots and sticks and give your accounts team some sales and soft skills training to improve their persuasion skills.

Tip Fourteen: Under Performers – If someone is consistently under performing, you have to let them go, you have to think of everyone’s job security in the long run. Be tough, it has to be about results, not effort.

Tip Fifteen: Best Performers - Are you using them to their best potential? Let them do more of what they’re best at it – empower them. Use your best performers as models, coaches or mentors for others to learn and potentially replicate good practice.

rec⋅i⋅proc⋅i⋅ty [res-uh-pros-i-tee] –noun
1. a reciprocal state or relation.
2. reciprocation; mutual exchange.
3. the relation or policy in commercial dealings between countries by which corresponding advantages or privileges are granted by each country to the citizens of the other.
(source dictionary.com)

What can you offer to one company in return for something else?

Use your soft skills training and interpersonal expertise to tease out ‘you scratch my back and I’ll scratch yours’ opportunities with other businesses.

Options could be big or small, but if you can avoid spending money for something, by offering another company something you already have to pay for anyway, you’re onto a winner.

Here are some random examples, which will hopefully get your opportunistic brain thinking:

Offer to share the knowledge and skills you’ve acquired on your sales training course to a small window company in return for improving the double glazing in your building.

If you’re an IT Support company, offer to do a computer system health check for a catering company in return for them supplying food and drink for your next few business conferences.

If you have a little office space that’s not being used, offer it to sole trader like an accountant or solicitor in return for their services.

You get the idea. The key is ‘opportunity cost’. If the opportunity cost is low for you to offer your services, you’re in a good position to find mutually beneficial solutions.

Former chairman of ICI, Sir John Harvey Jones who sadly passed away at the beginning of this year, was one of the most forward thinking and influential modern industrialists the UK has ever known.

He is perhaps best known to TV audiences for his show ‘Troubleshooting’ which was first broadcast in 1990, and ran for five series. As the title suggests he would use his vast skills and experience along with his bold decision-making to turn around ailing companies.

This led to him receiving a British Academy of Film and Television Arts (BAFTA) Award in 1992, and through it, according to Richard Lambert (Director General of The Confederation of British Industry).

“He subsequently became the acceptable face of capitalism through his television programme and brought the world of business to millions in an accessible way.”

This award added to other accolades; his knighthood for services to industry in 1985, and ‘Industrialist of the Year’ for three years running 1986-1988.

In his obituary, The Guardian makes an interesting point which can serve to give hope to business leaders struggling in the current recession:

“In the real world of unemployment and the collapsing industrial economy, ICI had just clocked up its first ever quarterly loss. Everyone expected the company, a bellwether of British manufacturing, to appoint another grey suit just to keep the corporation alive.

“Instead it got Harvey-Jones, with his shock of dark hair, trademark moustache, baggy brown suits and wild ties. Who could have guessed that Britain’s foremost chemicals company would, under his watch, quickly recover to make the first £1bn annual profit in British industrial history?”

His work and his beliefs form part of fundamental good practice inherent in many quality management training courses today.