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Recession, economic downturn, a falling dollar and collapsing sharemarket. With everyone from the media to your next door neighbour talking up how bad things are, what do you do?
Firstly, in the words of Douglas Adams, author of the Hitchhiker’s Guide to the Galaxy, "DON’T PANIC!". Most businesses are going to feel some form of a pinch so be prepared. Now is the time for clear heads and refocus on your business by working on it not just in it.
Following are a few things to do now so that will help you to ride out the storm. It is during these times that you will get to know the real strength and viability of your business so spend some time planning out your business for now and the future.
Step 1 – Where are we at now?
Focus on the overall business performance and identify areas of weakness. Undertake a real analysis of the business from the Financials, to Sales, to Staff and Customer base. Revisit what it is you are doing. During the good times it is easy for anyone to make money but it is during the hard times that the good businesses make money and build a future. Ideally, do the analysis with some key staff and external advisors (perhaps your Accountant/Business Advisor/Mentor), so that a real picture can be obtained. Make an Action Plan that can be acted upon. If you get stuck, visit ZENBUU and use our Management Too to help you plan, act and review.
Step 2 – Get into action
Now that you have reviewed where you are at, it is now time to create an action plan and implement it. The major failing here is trying to do too much and not knowing where to begin. From the situational review you should have identified several areas or issues that require improvement or action. To get these done you need to empower others around you to help resolve them. Where you need help; GET HELP. It is important to invest in the areas that need investment, however, ensure that at this time you are clear as to what you expect to happen from the investment. Give time for results to be achieved but make sure that you are proactive in your approach to managing the outcomes.
Step 3 – Be proactive
Now that you have a clear picture of where you are at and what you need to do, you need to be proactive in working on the business. This means getting involved and supporting your people to achieve the results required. Make the decisions required to be made and don’t procrastinate. Be focused in your tasks and spend time working in all aspects of the business. Most importantly have a full understanding on the debtors and creditors situation especially in regards to how you are paying bills compared to how you are getting paid. Get close to your customers and understand their situation and how this can potentially impact upon you. Look at the cost of business - are there areas of excess that can be cut or done more efficiently?
Step 4 – KISS
Do things that will help define your company as a necessary supplier. This will mean having a clear market positioning statement and message that your customers and end users understand and agree with. It is during tough times that “imitators” will suffer and perish. You need to do things that set your business apart and fulfil the markets’ needs. You need to make your product or service offering unique. The important part is to ensure that the market understand the message and who you are so keep the message simple.
Step 5 – Undertake regular check ups
After 3 months or so it is time to review the progress you have made. Undertake a review of what you have achieved in the areas of weakness and reformulate your strategies. Where issues are not progressing it is time to do something different. Doing the same thing and hoping for a different result is futile so change what you are doing.
The key to riding out the storm is to really understand what it is you offer and where your business is actually at. Get help from outside the business to address issues that you are not skilled at. Review your client base and address issues in relation to payments and support of your product or services. Remember it is during these times that some customers will seek to take advantage of the situation and while the deal offered may look good it usually isn’t in the long term so be aware and be proactive in monitoring and managing the business. Most importantly understand your cash position as even profitable businesses can suffer if cashflow isn't managed.
However, most important of all is “DON’T PANIC!” - you are not alone. Get the facts (just the facts, the real facts) and be proactive in taking your business forward to a stronger and healthier position.
For immediate help visit www.zenbuu.com and undertake the snapshot to assess potential points of pain in your business.
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