The Business Case: How do you grow during budget cuts?

James Brooks, RBAC, Inc.

Five years ago, oil prices were hovering around $100/barrel. The North American energy industry was booming, and thoughts were on energy independence and even becoming a net exporter. Few were prepared for the subsequent collapse of oil prices which fell below $30/barrel, leading to budget cuts, downsizing and consolidation. We saw a recovery of our industry where oil prices stabilized between $50-$60/barrel over the past few years. This year with the Coronavirus pandemic, oil prices have again collapsed to below $20/barrel and once again thoughts are on budget cuts and downsizing. 

Many articles on the cause and effect of low oil prices have been written. Some are optimistic while others are pessimistic. I am of the view that the energy industry is very dynamic and will always go through cycles of up and down periods, but there are a few fundamental truths that carry forward no matter what the market environment. These truths apply to both businesses and individuals alike. 

Delivering in abundance

What does it mean to deliver in abundance? First let’s pull out the fundamental basics of economics. One produces a product and delivers that product to a consumer. The consumer then delivers some exchange back for that product. Is this too simple? Any salesman would say of course we want to sell more products to our customers. But there are two ways to look at abundance. The first is deliver exactly what was asked for to as many customers as possible. The second is a little less common. Deliver more than what was asked for or expected to each customer.

From a business standpoint, the customers are usually external who would exchange money or goods back to the business for a given product. From an individual’s standpoint, within the company, that exchange could be to either external or internal customers. An individual services their customers. It does not matter whether their customer is an external client, a co-worker, a boss or an investor. 

If one subscribes to the second view of delivering with abundance, one not only strengthens their own position, but supports and strengthens the position of those they work with. This philosophy extends beyond the business world and applies to every aspect of one life. You can deliver in abundance to your family and friends. 

Stay positive.

This one is not always easy. There are always barriers to staying positive. Sales are down, social distancing, politics, bills… You name it. Keep in mind there are a lot of good things going on as well. Although, if you watch the news every day you might think otherwise.

Staying positive creates an easier working environment. This goes beyond just your work, but also for those around you. This is also a point of delivering with abundance. No one expects you to try to brighten their day, but when you do the effects are tremendous. Have you had someone brighten your day? Hold that thought for just a moment… Now imagine producing that effect in others. Staying positive can take you a long way in life and business.

Work hard.

 “None of my inventions came by accident. I see a worthwhile need to be met and I make trial after trial until it comes. What it boils down to is one percent inspiration and ninety-nine percent perspiration.” – Thomas Edison

There is a reason why “work hard” is on everyone’s advice to success. It is true. In this day and age, there are incredible technological resources available to everyone. From computers to the internet one can efficiently work from just about anywhere. Along with all that technology, there is a lot of potential for distractions that can pull you away from work. You will never be able to achieve the goal of delivering in abundance without also having the willingness to work hard.

Be ethical.

Most people think being ethical is just being moral. Well, morals change between different groups and cultures. What one might consider moral others consider immoral. Therefore, being ethical is actually a personal matter. One’s own ethical standards are influenced by their groups and cultures, but in the end it is their decisions about it that they will have to live with. 

Is it ethical to go on Facebook during work hours? One person might feel that as long as they are getting their work done, they have the right to take a break and use Facebook during work hours. Another might feel that it is unethical to do so. A work place might have certain policies regarding it and may enact some sort of justice on an individual over it.

In the end, it will always come down to the individuals making their own decisions about these things. What one needs to decide is whether their actions are actually moving them towards a better life. Does going on Facebook help me and my career? Does taking an extra-long coffee break refresh me enough to be more productive or does it harm my work? If the actions you take improve your life, improve your work, etc. they can be considered ethical. When one knows they are not being ethical, whether others know it or not, it can negatively affect their lives and work.

Do what works.

 “Desperate times call for desperate measures.” Why? Workable methodologies have been invented and used for just about everything. Sales are down, the market is tough and budgets are being cut. Let’s try a new sales technique that has never been tried before! This is probably one of the biggest mistakes people make. You may get lucky, but more often than not these new ideas cost a lot of time and effort without much success. 

This does not mean you do not take advantage of new technology, but rather you learn how to apply tried and tested methodologies to that technology. Social media is a relatively new technology and if one applies successful methods of advertising to social media it can be successful.

Delivering in abundance is not a new untried method. It is a very successful approach to work and life that can be applied to anything. It works because it improves the conditions of all parties. 

So, how do you grow during budget cuts?

I saw a quote floating around LinkedIn. “Sell your solution, not your product.” It is a good quote, but it goes much further than that. You need to see beyond building a customer base by providing them solutions to problems. You need to see them as strategic partners. Yes, they need solutions, but they also need partners to support them in their growth. You grow by helping others grow. 

You do this by providing more than what was asked for. Budgets are being cut up until the point where they find something worth spending money on and growing your business has always been a worthwhile expenditure.