Ask Andi: Surviving to thriving in the business? Not. Thanks to a lousy economy, instead of leading we went into survivor mode. That has cost us a lot of money. As a result, running our business is not as much fun as it used to be. What can we do to get back on track?
The driving force behind surviving to thriving of a privately-held business is the owner. In tough times business owners end up isolated. Always trying to work out complex problems on their own. It’s been a touch-and-go economy, with 2 steps forward, and 1 back. The stress that goes with uncertainty can wear down the strongest of business owners.
Businesses surviving to thriving
Unfortunately, as business 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 marshaling of resources.
This owner would do well to remember that in every economic cycle, there are winners and losers. Not everyone fails, and not everyone survives. Choices, plans, and perseverance make the difference. Owners who take deliberate, well-thought-out risks, and who use a written, regularly updated plan, are more likely to survive.
Most owners, if asked, say that 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 5 things we need to get done right away, 5 things mid-term, and 5 things long term, to help the business make progress
Business unfolding with all its promise
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. Advisors 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 for marshaling support, 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 the next steps to build up cash flow
- Ask everyone to come up with 1 or 2 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 – just check to be sure things stay efficient as you expand
- Look for opportunities to partner up to pursue new ideas and growth, limit risk, and increase your odds of success.
The bottom line is, don’t go it alone! Get everyone involved in putting a plan down on paper and making it happen. In areas where you’re struggling, get expert advice to help you breakthrough.
