No business can stand immune to the changes in economic situations. What you can be prepared for, is the risk changing times come with. That is when your network of friends and colleagues can help you create a cushion from those tough times. To work towards a more secure and risk contingent future, you have to lay the groundwork.
You may be surprised to know that many successful businesses close down due to non-realistic goals or unclear objectives. These businesses are not able to scope themselves or determine a clear direction. It is important to have a long term and a short term vision of your business.
Strong network of business advisors and a finance professional
You may want to organize an informal group to discuss issues of same-size companies. This can help you plan for risks that your business might not have seen yet and discuss possible solutions. Having a strong finance professional whom you can trust with helping you make both short term and long term goals is also very important.
Communicate your uniqueness
Know your differentiation and keep track of market entry and exits. Work on your unique message. Market segmentation and corresponding effort segmentation is very important. Understand your profit zones and allocate your time in those markets and customers accordingly.
Hire good talent
It is easy to find good talent in a down economy. Spend time hiring the right talent and keeping them by giving voluntary benefits – things that you as an owner can get at a lower cost and offer to your people.
Trim the fat
It is easy to work when you have all the means but the challenge is to get things done in minimum budget. Look at the expenses and see what can be trimmed. You might not see the economic impact right away on your business but no one is averse to a downturn. Plan and prepare for the worst.
Leverage your existing infrastructure
Instead of retreating your core business in tough times, look at maximizing the infrastructure use by complementary business opportunities. Find out the local needs of your area and see if you can add some revenue by those streams.
Develop a succession plan
It is very important to plan your succession—especially if you are nearing retirement. Having a plan in place is important to fall back on in a bad economy. Talk to your finance professional and lay down possible options.
Remember tough times do not last forever tough people do. A problem is a chance for you to do your best.” – Duke Ellington
For more, visit the following: http://www.massmutual.com/mmfg/pdf/SBOguide.pdf
Thanks for reading, and until next time… stay WISE!