If you are camping and a bear approaches your campsite, you should:

A. Make as much noise as possible, yelling and waving your arms

B. Crouch and remain perfectly still and silent

C. Run to your tent and hope for the best The correct answer is, of course, A. Make noise, give the impression that you are bigger than you actually are, and whatever you do, don’t run in the other direction.

Why, then, are so many companies resorting to B or C in this bear economy? Relying on cost-cutting measures to return a business to prosperity is akin to running into your tent and hoping for the best. The businesses that will come out of this recession thriving are methodically looking for opportunities to capitalize on the current competitive environment. They are companies reaching out to customers to improve their communications and reputation. They are finding ways to hire the best talent from struggling competitors. They are determining which customers and lines of business are not profitable so they can emphasize sales that will improve the bottom line. These companies are seeking opportunities and improving their market share.

Here’s how this approach has benefited some businesses that we’ve recently worked with:

• A giftware company was experiencing a deep loss of revenue. Their primary customers were mom-and-pop shops and chains that were cutting back orders. A long-standing fear that heading to the big box retailers would alienate their core business stood in the way of growth alternatives. A big box expert opened new accounts with Wal-Mart, Target and Michaels while maintaining solid relationships with the mom-and-pop accounts. Sales for 2009 are up 7% over last year.
  
• An environmental consulting firm, seeing that some of its competitors were “hunkering down” launched an aggressive initiative to hire away the best and brightest to strengthen its management team.
  
• A data collection services firm, experiencing a rapid decline in sales and a resulting loss of talented staff, implemented a new growth strategy. In meeting with clients, current and past, it became apparent that the company was not only losing business due to economic factors, but also due to significant customer service issues and clients were taking their business to competitors. Even when they filled the top of the bucket, the water was leaking out the bottom. These meetings gave the company an objective assessment of the perceived value of its services and enabled it to make the most effective use of time and money in building the top line by repairing its reputation.