Reinventing your business

Recession encouraging business owners to think and work smarter
How to weather the economic storm and reinvent your business
Reviewing current business practices for the new year

Recession doesn’t have to be a bad thing; it can actually encourage business owners to think and work smarter. In the first of a monthly sales and marketing series, expert Sharon Williams puts a positive spin on tough economic times and shows you how to reinvent your business to stay ahead of the game.

So the recession has either left your business booming and you are drowning from keeping up with demand, or you’re realigning expectations for holidays in 2009 to be a comfortable tent in the backyard. Extraordinary times for all.

Either way, the New Year brings opportunities for change and improvement, whatever the state of your business. I believe those that have had it tough are more likely to be ready for reinvention in 2009. There is no doubt that tough times make you smarter.

One customer likened the past three months to pouring his business through a sieve; what remained was all the good stuff. Many of my customers have said something similar, streaming out what isn’t productive and holding onto what is really important. This is a strong positive about recession; it encourages us to focus and make better use of our time and resources, however painful the process can be. It takes you into a new space which, if you are smart, looks mean, lean and hungry. It can be a great place if you want to fast track to more successful business practices.

Just to recap, this is what you should have done already:
1.    Ask for help. Don’t panic. Meet with business advisors you can trust.
2.    Know your numbers. Review your costs
3.    Cut big costs hard. Don’t salami-cut, cut big, cut once, cut fast.
4.    Stop spending.
5.    Stay close to customers. More than ever.
6.    Focus on sales.
7.    Continue spending on sales-related activities.
8.    Forecast for 30 percent sales down for the next 12 months.
9.    Cashflow forecast fortnightly, if not more often.
10.    Communicate with your team regularly.
And it never hurts to smile and look positive, even when you are exhausted!

Having your own business is an issue of tenacity, decisiveness and clear, rational thought. As business owners, we’ve never needed more courage and tenacity than during this last few months. So how do you kick off a New Year full of hope and glory?

Be prepared to re-define your plan
It’s a new world out there, whether you like it or not. Review your revenue objectives and where you’re going to focus for the next 12 months. Whether business is booming or struggling, it’s naïve to think recession isn’t going to hit you somewhere, via your suppliers or your customers. It will have an impact on someone close to you.

Re-define how you account for and control your money
Evaluate and consolidate your new cashflow systems and remember you don’t have to do this paperwork yourself. Get your book keeper or PA to do it for you. Have your essential reports, balance sheet and profit and loss statements delivered by the fifth of every month and cashflow estimates three-to-six months ahead. Have your accounts payable and accounts receivable delivered each Monday and chase money voraciously. Even look at invoicing more regularly or increasing your prices.

Find every way to talk (not just email) to your customers
Partner with your customers and work alongside them; use the New Year to reconnect. This is easily said but few companies will do it effectively. There is no need to sell them anything with every communication, but let them know you are there and offer them assistance; some free value-add you have at your fingertips will help. Genuine care puts you front of mind. Reconnect with them; throw a cocktail event, survey them, talk to them, get face to face. Find out how the world has changed for them. They are almost certainly in the same boat. Those that stick together, succeed together.

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