How to get through the credit crunch - keep the focus

I will start by admitting that I do not understand the losses made by the banks as a result of the sub prime lending in the US. In the Daily Telegraph it stated that the losses to the British banking system of more than £20billion are equivalent to 3% of our GDP. The US expect to lose £72billion, Japan £5billion and Europe will lose £61.6billion.

These are huge figures. But as I say I don't really understand how they made such a hash of it. It would appear that there are humungous numbers of payment defaulters in the US.

Moving on however is the impact it will have on our economy. The DT Business section highlights a downturn in M&A activity as a direct consequence of the credit squeeze. Banks no longer have the money to fund them or if they do it will be at very high interest rates.

So what does the creative agency do to get through this turmoil? Are there any benefits that can be gleaned from this situation? The answer is a most emphatic yes - we will all have to become leaner and fitter!

I believe that the answer is to go back to basics.

• Build a strong reputation - become famous for something
• Deliver value laden services or products - exceed client s expectations
• Build long and strong relationships - people work with people they like, know and trust
• Manage the cash - do everything that is legal, decent, honest and truthful to manage cash
• Look after the talent - Good ones go, the poor ones stay. Make sure you give them no reason to move
• Promote yourself as widely and as effectively as possible - internet marketing affords cost effective new ways to get in front of new clients
• Be innovative - what got you there wont keep you there so be on the alert for new ideas
• Get the processes right - efficiency means using the scarce resources where they generate the best returns
• Watch the profit line - winning on price is the fools way to grow. Keep the margins high!
• Enjoy yourself - get some harmony back into your life!

Simple stuff but hard to implement. Done well they will ensure you get through the crisis.

See you on the other side!