Our company has attracted over 140 technology employees to Livingston, Montana by focusing on three key things:

Key 1: Enforce a top down philosophy of recruiting, hiring and retaining only the best. In today’s world most goods and services are viewed as commodities. All levels of your organization must understand that having the best employees is what separates you from your competition. If any manager in your organization thinks that just any warm body will do you have a problem.

Key 2: Create organizational alignment with regard to hiring criteria. If you don’t know what you are looking for, how can you find it? Get your key people together and make sure you all identify and agree upon hiring criteria. You will be amazed what a difference it can make when everyone agrees what qualities make a great employee for your company.

Key 3: Develop and adhere to processes to ensure that only the best are hired. You can’t just hire from the gut – no one is that good. Develop and adhere to a process from the first contact through the offer letter and beyond to make sure you get only the best, every time.

Big or small, three steps are all it takes to get the employees you need to succeed in hiring the best in any economic environment.

Throughout the history of the United States job creation in mass has come from a few key areas. One solution has been to go to war. During World War II for example, 17 million jobs were created (it effectively ended the great depression). However, I’m doubtful I can convince our small town to invade the next town over as a job creation tactic.

Another solution has been to spend money on infrastructure. Our federal government is currently spending boatloads of money to stimulate the economy and job growth. I hate to be a downer but the last major study of Federal Highway funding (2004) showed that the equivalent of 34,000 jobs were created by a $9 billion expenditure (about $264,000 per job). Not a great return on an investment in my book and I am doubtful our town wants to borrow $26.4 million to create 100 jobs.

The best solution to job creation has historically been small businesses. Small businesses have created 60 – 80% of all the new jobs in this country over the past 30 years. If that is still the case (I have no evidence to the contrary), why don’t we focus on creating an environment that encourages small business job growth? That environment to me would include lower taxes, less regulation of business and better access to capital for people who want to start or expand businesses. While not revolutionary ideas, they certainly seem out of favor now.

So I think I will stop engaging in the endless loop of discussion about “economic development” and start trying to convince my small corner of the world to create an environment favorable to job creation. To me, it’s the jobs (stupid).

I’ve spent more than 20 years working in rapid growth small businesses and recently had a MBA student ask me one of the most interesting questions I’ve had in some time. What have been the 3 most important lessons I’ve learned? It is a great question and harder to answer than I thought. After sleeping on it, here is what I came up with:

Like a shark, you have to swim forward or die
Innovation is the key to any young business. If you are not looking to improve your service or product at all times a competitor will do it and you will lose your advantage and go out of business.

You should be willing to do anything for money as long as it is legal, ethical and moral
Too many people in start up businesses get fixated on their ideas and don’t make money when they can. If you run a painting company and someone asks if they can buy brushes from you, why not make some extra money even if that is not your main business?

Stupid people cost you money
While this seems harsh, it is true. Failure to hire and train the very best people you can is the death of many businesses. If you hire someone who just does not get the job done, cut them lose as soon as possible. You are doing both parties a favor.

It is not often that you get a request to share your hard earned wisdom in a short and concise manner. I’d suggest that everyone try the exercise even if you don’t share your answers with anyone. You might be surprised with how useful your lesson list can be as you deal with your day to day problems.

Today, we’re expected to do so much more with less and although technology allows for greater speed and efficiency, there’s nothing like the motivation you get when you have to deliver for your teammates.

Truly interdependent teams take advantage of the strengths, while downplaying the weaknesses, of its members. And, when there is trust among members, asking for help or feedback is never perceived as weakness. Trust allows team members to stay focused on results.

A lot has been said about teamwork. My favorite thought leader on teams and teamwork to date, however, is Patrick Lencioni. His book and subsequent workshop called The 5 Dysfunctions of a Team provide a clear model and attainable set of principles that can work at any level of your organization.

Developing real teams and teamwork is tough and takes a significant ongoing investment of time.  However, the pay off in company results, individual effectiveness, and employee satisfaction is well worth it.

The point of the $700 billion dollar bailout was to ease the pressure on the banks and free them up to extend credit to Small to Medium Businesses (SMBs) in order to keep our economy moving in the right direction. With all the money being thrown at large corporations with little to no effect, SMBs are feeling the squeeze more than ever. In short, banks still aren’t providing loans and SMBs aren’t getting the credit they need to keep their businesses running.

Andrew Field, CEO and Founder of PrintingForLess.com and contributor to this blog was featured in Forbes.com today outlining his idea for providing loans to SMBs who keep and create jobs.

The essence of the plan is to preserve and increase small-business jobs by letting them be used as the security for low-interest loans. Make available to small businesses $20,000 in unsecured loans for each full-time employee … The proposed plan would immediately halt the loss of jobs in the SMB sector and keep alive many businesses that suffer from the sudden drop in revenues …

Andrew’s article has caught the attention of Montana’s own Max Baucus as well, one of our US Senators and chairman of the Senate Finance committee.

The plan is simple, smart, seems easy to implement and more importantly, is desparately needed to keep the engine of our economy going. If you like what Andrew has to say, particularly if you’re a small to medium business owner, be sure to let your elected officials know.

There are  very real factors that can weigh in on what we can and cannot control–most of which are subjects for other posts on other blogs. Socioeconomic, education, and social-justice issues are just a few. However, when we go back to basics and follow simple principles they usually don’t let us down.

Keep costs down. Renegotiate with your vendors. They might be going through tough times too, but one thing you can count on is that they don’t want to lose your business. Save when you can: Having cash on hand during a credit crisis for home or business will make it easier to pay for the things you need going forward.

Invest in your employees. Numerous studies have proven that it is always more expensive to hire a replacement for an employee than it is to invest in the good ones you have. In the end, the ROI will be increased productivity, increased loyalty, and happier customers. Do right by your customers. We’re all feeling the squeeze, but I would wager that even the squeezed-iest among us would still rather pay a little more for a great product at a fair price that comes with great service than a mediocre product at a cheap price that comes with terrible service. Any joker can lower his price; don’t fall into that trap.

Invest wisely in a marketing plan that has a proven track record for you. Maybe that means going after loyal customers with a call to action that will encourage them to spend more or seeking out new customers that you can wow and retain for the long haul. 

When it comes to facing down the downturn, getting back to basics is all about what you can control.

How are you handling the economic crisis? Or, in the words of the new contest that PFL recently announced, “What recession-busting marketing tactics will you use to ensure your business comes out on top?” Share your ideas in comments, or enter the contest.