IN THE KNOW —
Seven Tips to Build a Recession Proof Business New Zealand and the world is experiencing an uncertain and disruptive business climate; now is not the time to hibernate and neglect your business, your staff and your clients. The truth is what you do in the next couple of months could make all the difference – will you be raring to go or scrambling up from the bottom? I know the real and sad impact of business failure and I don’t want that to happen to you. That’s why I’ve put together a list of tips to help you manage the short-term business issues you are facing, and help you and your team get prepared and ready to go at full speed ahead through this recession and out the other side.
Tip One: Triage The Important Issues
Tip Four: Think Service Rather Than Sell What are the immediate needs of your people? Firstly, they need communication. They want to hear from you about what is happening with their project and your availability to them. Send an email to your clients, letting them know if there are any changes to your processes and you are available to answer questions.
As leader of your business you need to manage the urgent short-term “red” issues the various lockdown levels have caused and then focus on those important “yellow” problems that will take longer to deal with. The government has announced extra funding related to the impact of COVID-19. You are able to access additional funding vouchers to help with the effects of the shutdown (to assist with cash flow management and business continuity) and get you ready for a faster recovery (develop skills around marketing, improving your systems etc.). Speak to me on how you can apply for funding.
Tip Five: Opportunities
Tip Two: Set The Right Tone For Your Staff
Write or revisit your business plan, set and revisit your targets and key performance indicators, get a handle on your finances – especially your profit and loss and cash flow – or ask your accountant or coach to explain them. Look at your marketing strategy and see if it is attracting your ideal client or if you need to change it.
Don’t hold information back from your team members on the challenges you face and the plans you have to address them. This just encourages them to chat amongst themselves because they don’t know the full story and therefore make up their own incomplete version of events. Now’s the time to be proactive and set the right tone. Keep connected and keep the tone both positive and transparent.
Tip Three: Stay Front Of Mind With Customers Your clients and prospects still want to hear from you. A lot of people are spending more time on social media, and it’s becoming increasingly common for people to find out about businesses through Facebook, Instagram or LinkedIn. Leverage these technologies or delegate the task to someone else. Does your business offer something unique for the construction industry? Educate your readers on the benefits of this approach through punchy social media posts, or better still, video content. Engaging and informative posts often get shared widely, so more people can find out about you and your services.
Even after the 2008 Global Financial Crisis, small businesses were able to make money because they were proactive and could see the opportunities. What projects or challenges have you put off because you have previously been time poor? Can you pick up a new key staff member? What networks can you join to get some referrals? Keep your eyes and ears open for the positives that can eventuate during this period.
Tip Six: Review The Fundamentals
Tip Seven: Reduce Your Costs What you could do to help your cash flow and profit (rather than increasing debt): • Get rid of subscriptions that you are paying but aren’t using or are no longer necessary • Identify your number one profit leak and plug it • Talk with your accountant about the possibility of paying your tax in instalments • Look for technology and software that are offering free subscriptions or trials • Review your payment terms with suppliers. The Trades Coach is available remotely to provide you with the support and accountability you need to get through the business challenges you are facing.
Andy Burrows, Director of The Trades Coach and NZCB National Partner. I encourage you to take advantage of a free business strategy review session to see how we can improve your business performance. Call Andy today on 027 688 6721 or email andy@tradescoach.co.nz.
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