Thanks to a lousy economy and uncertain conditions, instead of leading and being strong we went into survivor mode. That has cost us a lot of money. Any suggestions for getting back on track?
The driving force behind every privately held business is the owner. In tough times owners end up isolated, trying to work out complex problems on their own. It”™s been a touch-and-go economy, with two steps forward, one back. The stress that goes with uncertainty can wear down the strongest of business owners.
Unfortunately, as owners get stressed and distracted, playing more defense than offense, the business slows down and opportunities are missed. Getting back on track takes razor-sharp focus, a clear plan of action and deliberate marshalling of resources.
This owner would do well to remember that in every economic cycle there are winners and losers. Choices, plans and perseverance make the difference. Owners who take deliberate, well-thought-out risks and use a written, regularly updated plan are more likely to survive.
Most owners, if asked, say a plan would be useful but there”™s no time and no one to help them build one. Don”™t believe it.
Set aside time each week to work on the business. Figure out how the business will grow its way out of its troubles. Answer some basic questions:
- Who are our best customers and what do they want next from us?
- What are our best profit products or services and who else might buy them?
- How much more could we make if we let go of our least profitable clients and replaced them with better quality customers?
- What would be the benefit if we stopped supplying low-margin products or services and put all our effort into our best ones?
- How much more profit do we need each month in order to put money away into reserves?
- Where can I get a budget and forecast so I can see what”™s happening more clearly?
- Which jobs have to change as we move forward?
- Since we can”™t do everything at once, what are the top five things we need to get done right away, five things mid-term and five things long term to help the business make progress?
The company”™s success means a lot to everyone around you and most are motivated to help. Employees keep their jobs. Vendors keep your account. Customers continue to rely on a valuable supplier. Advisers add you to their list of success stories. Family members get to share in the profits and benefits of a more relaxed owner. Friends get to see you succeed and enjoy your company. Get them all involved in helping you move the business forward.
Here are suggestions so you don”™t have to do it all yourself:
- Ask who can help you get more prospects (include easier-to-sell referrals).
- Brainstorm ways to self-finance growth and prioritize next steps to build up cash flow.
- Ask everyone to come up with one or two ideas for a guerilla marketing plan, targeting the most profitable markets and customers.
- Check on operations one more time ”“ by now you”™ve probably made as many cuts as possible ”“ to be sure things stay efficient as you expand.
- Look for opportunities to partner to pursue new ideas and growth, to limit risk and increase your odds of success.
The bottom line is, don”™t go it alone. Get everyone involved in putting a plan on paper and making it happen. In areas where you”™re struggling, get expert advice.
Looking for a good book? Try “Duck and Recover: The Embattled Business Owner”™s Guide to Survival and Growth.”
Andi Gray is president of Strategy Leaders Inc., www.StrategyLeaders.com, a business consulting firm that specializes in helping entrepreneurial firms grow. Questions may be e-mailed to her at AskAndi@StrategyLeaders.com or mailed to Andi Gray, Strategy Leaders Inc., 5 Crossways, Chappaqua, NY 10514. Phone: 877-238-3535. Visit www.AskAndi.com for archived articles.
