As last week proved, it appears that the global economic realities are with us for the long haul.
The debt crisis in the United States and Europe continues to influence world finances. The plunging stock market created new anxieties.
Although our financial house is in much better shape, Canada cannot help but be affected by these forces.
This situation can certainly test our resolve, and with good reason. Depending on the type and size of your business, these issues may be very significant to you.
Generally, it’s important not to overreact. My advice is to keep informed and concentrate on business basics.
The following points are a good refresher and a reminder that you do have some control in key areas.
Mindset
I admit that some media makes it difficult to remain positive at times. However, you do have a choice.
Negative thoughts have a way of fostering negative outcomes. Be aware and maintain a balanced approach. Practise responding to issues in a more a positive way.
Be proactive, not reactive. Successful business owners know their own limits and invest money to educate themselves in the areas where they are weak.
Read books and listen to business CDs, or associate with business colleagues who promote and reinforce positive philosophies. Learn techniques that will help you to stay motivated and focused.
Accountability
Remember that you are accountable for your own behaviour and performance. Be aware of how your performance influences results.
Review the key performance indicators in your business that are critical to your business’ success. Implement a default diary to assist you to complete tasks on time. Reward yourself and others for positive results. Share and celebrate even small successes.
Entrepreneurs are often thought of as passionate risk-takers with a talent for making opportunities grow into profitable businesses. Age, educational background and experience are not nearly as important as their desire to learn from life lessons and willingness to roll with the punches. They are also are keenly aware that they are accountable for results.
Planning
Now is the time to review and renew your business plans and goals. Be strategic in your planning; long-range planning is critical to success.
ActionCoach instructs business owners on how to create a solid plan for at least one year out and a skeleton plan for the next five. The 12 months are then broken into quarters, 90-day plans, with goals and strategies in place that include weekly activities to move the plan forward.
Be mindful of the issues you might encounter — expected or unexpected — in the next 90 days.
Financial mastery
How are your financial literacy skills? If you are not confident reading an income statement and balance sheet, take a lesson from your accountant or take a financial literacy course.
It’s also an ideal time to consult with professional advisers to get an accurate picture of your current financial situation.
A company may seem profitable on paper but the numbers will often indicate cash flow gaps. Most businesses are looking at ways to operate “clean and lean.”
Keep your inventories in check and take advantage of your suppliers’ payment terms. Re-evaluate your margins to get an accurate picture of where the profits really are. Understand where your break-even is so that you know when you become profitable on a weekly, monthly and yearly basis.
Sales and marketing
Clarify your uniqueness, your USP (unique selling proposition). Establish what makes you different in a way that can be communicated in your marketing. Utilize your uniqueness in your status updates, email signature line, voicemail messaging, networking and on all print documents.
All advertising mediums have their strengths and applications. It’s imperative that you test and measure your marketing strategies to know the results and to make informed decisions.
Most business owners focus 98 per cent of their resources on trying to attract new customers. The fact is that it costs six times more get new clients than to maintain customers you currently have.
Refocus your efforts to keep these clients satisfied so that they will continue to buy from you.
There will always be outside forces that you can’t control. Stay informed, and then manage the things you can in order to secure success.
ActionCoach is written by John MacKenzie of ActionCoach, which helps small- to medium-sized businesses and other organizations. He can be contacted at johnmackenzie@actioncoach.com or by phone at 403-340-0880.