Title	Where do we go from here?
Date:	4/1/2001
Author:	Sydney Shaw
Source:	Silicon 2.0

It certainly is no secret that the economy today is facing many hurdles, but instead of examining the downside, what about looking at how some of the Central Coast’s successful companies are approaching their business?

In a time of layoffs, retrenchment and increased focus on profitability, many companies are reverting to more traditional means of operating a business.

Managing in the New Economy is similar to managing in the Old Economy. The primary reason? Financial discipline, understanding the customer, and building a world-class management team are still key.

Although contemporary office culture may consist of business casual and monthly barbeques, companies are quickly realizing that to succeed they must shift back to the lean and mean approach of traditional business.

The market has sent companies a message: it is time to put heads down, focus and get back to work. This is an essential strategy, and executives are taking a more humble approach to how they will market the enterprise with smaller budgets and demand for results.

The fundamental way companies such as Somera Communications run their business is based on strong leadership, a solid business model and keen relationships with its customers.

The key to success in turbulent times is having strength and financial stability, said Jeff Miller, senior vice president of sales and marketing for Somera. Somera has grown at a rapid rate, but we have been conservative in running our business. Economic elements are out of your control, but Somera is fortunate in that we have built a strong foundation to weather the storm.

It has been an interesting over the last year to see how many companies were left unprepared for the retrenchment. Many believed that the money followed the hype, the press, and then the IPO.

Investors were devoted to the visions of young entrepreneurs because they were starry-eyed and believed in their vision, however obscure or arrogant it was.

The CEOs were becoming the product, not the company, which detracted from what they were supposed to be doing running a business.

Just because you’re smart and trendy, does not necessarily mean you will succeed as a CEO. Fortunately, there are company heads on the Central Coast taking a different approach.

Rick Davis of Ants.com realized early on that to succeed in today’s challenging climate he had to guarantee that the company was strong enough to quickly adapt to any change on the horizon.

Ants.com has altered its business model nearly six times to reflect the growing needs of our customer base and the market economy, Davis said. We realized that in order to sustain profitability, we needed to offer a service to our members that would keep them coming back, as well as to refer new members.

Ants.com has launched a new product labeled Scout, which automatically updates contact information in electronic address books. The idea was developed following the success of the company’s initial product, Farm, where freelancers go to bid on various projects.

We saw that our members were making numerous business contacts and needed a better way to manage their contacts, he explained. With the onslaught of layoffs, and job-hopping prevalent today, what better way to manage your database?

Davis also understands the importance of running a lean and mean operation, without spending millions on marketing himself or his brand.

He keeps a token from one of his competitors hanging on his wall to remind him that it doesn’t take a $40 bathrobe to retain a customer. A strong leader knows the importance of understanding the customer’s needs to chart a plan for aggressive growth by answering those specific needs.

With a myriad of new technologies coming to market, companies need to be smart, as well as eager, to assimilate to the changing times. It is imperative that companies react quickly.

In recent months, Internet giant Yahoo has experienced steep falls due to the company’s resistance to change its revenue stream based on advertising sales.

Instead, many companies are now reverting to successful business models from more traditional means and are implementing their experience to make them stronger.

Demetri Argyropolous of Prima Consulting Group, a full service consultancy firm, is quickly becoming a formidable resource in helping companies grow and navigate their business.

In order to ensure the financial stability of a growing operation, you must have financial discipline and the ability to conform to the economic trends of the global marketplace, Argyropolous said. [This is done by] combining the old economy with the new the clicks with the bricks. You cannot survive today in the tech environment without annexing yourself with the two.

The need to relentlessly focus on maintaining and growing margins through a combination of strategic pricing and effective cost control is key to ensure the financial stability of a growing operation. CEOs must require a balance of being a full service provider to their customers, as well as a strong leader in balancing all major inside functions of business.

Unfortunately, the young, bright and talented young business people of today are now weary of being entrepreneurs or starting careers with a non-traditional company.

The lure of IPO riches is quickly fading and being replaced with workers going B2B, now fruitfully referred to as Back to Banking.

Dennis Cagan, founder and CEO of the Santa Barbara Technology Incubator, is a resource of knowing a good thing when he sees it. Cagan, a serial entrepreneur, has been involved with some of Santa Barbara’s most successful technology enterprises, including Wavefront Technologies, Software.com and Supply Solution.

Don’t ignore your instinct, Cagan advises. If you are a leader with charisma, vision, and a business model with visibility to profitability, you’ll be on your way.

Entrepreneurs are emerging smarter than ever from the dot-com crash. They are battle-hardened, too.

The key is to be focused on your vision, strive for the highs, yet be prepared for the worst, and always leave enough fuel in the tanks to afford the challenges ahead.

It is also important to remain humble, for humility will get you everywhere. So, enjoy those pink-slip parties, but also don’t forget the reality. Instead, organize a think tank and inspire those around you to lead the next wave to success.

While many in the technology industry are struggling or are no longer in business, Central Coast companies such as Somera, Ants.com, Prima Consulting, and SBTI are proving that success is more than possible in today’s challenging market place.

Sydney Shaw is a freelance high-tech public relations and marketing specialist who has lived in Santa Barbara for the last 15 years.

To ensure the financial stability of a growing operation, Demetri Argyropolous advises companies to have ‘financial discipline and the ability to conform to the economic trends of the global marketplace.’