KeyPlay Business Solutions

How Will Your Business Manage The Changes Coming ?

Charles Darwin once said;

"It is not the strongest of the species that survive, nor the most intelligent, but the ones most adaptable to change"

In these times of the impending economic recession, this couldn't be truer for Australian businesses. It is almost certain to say that times are going to get tougher, and change will need to be implemented to ensure your business stays competitive. We have seen the effect the global financial crisis has had on America, yet the extent of the damage to the Australian economy is yet to be seen. If the economy slows down even further then it is important that strategies are prepared to cope with the turbulent times. Change in itself is not necessarily a bad thing. Often new business ideas and efficiencies are developed during tough economic times. It reminds me of the US Marine Corps slogan, ‘Improvise-Adapt-Overcome.' This was certainly the case whilst growing up on my father's wheat farm in the Wimmera.

Preparation & Leadership:

Winners map their course to success. Losers consider plans belong to architects and maps are for the holiday road trip.

If you prepare now, you won't be caught off guard if things take a turn for the worst. You must ensure that you completely understand your business's current financial position, so you can plan and forecast for possible future events. To do this, you must tighten the reins on all of your management and reporting systems, so you are completely informed and aware of exactly how your business is performing against its goals. Goals can be Key Performance Indicators (KPIs) or Industry Best Practice figures. However, even more basic than this is asking, "Does my business have goals?" If your business does not have goals, KPIs or compare itself against the best in your industry, isn't it time it did? Every business needs direction and checking that it is heading where you want it to, needs to be done at least monthly. When times get tough, re-evaluating after six or twelve months is too late. I find many businesses only use MYOB or QuickBooks to do their annual tax or business activity statements. Today these programs can do so much more, including helping you identify where your business is not performing. If these weak areas can be recognised, business owners or management can then take action to fix the problem. Leadership on these issues needs to be taken:

"The spirit of the organisation is created from the top" - Peter Drucker

"A fish rots from the head" - Russian proverb

Love Your Customers:

Winners are pro-active. Losers are re-active.

As the business climate changes, your customers needs will change also. So you need to adapt to ensure you continue to meet their needs to the best of your ability. The best way to do this is to develop a more personal approach, show that you care and contact them directly. Nobody knows the customer's needs better than the customers themselves, so you need to get to know them and communicate with them constantly. Get feedback from your current clients, or even past clients to see where you went wrong and how you can improve your services and meet their needs. Understand that their own businesses or financial situation may be affected also, and look for ways that you can help. You do not need any new customers if you can do a better job with the ones you already have! Does your business have a Customer Care program? Do you reward your customers for referrals or for repeat business?

That being said however, all businesses have customers or areas in the business that can be more trouble than they are worth. Sometimes businesses try and be "everything to everyone", only to choke the business's success. The more products and services you offer the more this can happen. The key is to find your Niche Market and then focus on your Core Business. This way all of your operations tend to streamline. Look at the most successful franchises, do they offer everything to everyone? No, you know exactly what you purchase before you even walk in door.

Your People... Your Greatest Asset:

Winners encourage and inspire others. Losers criticise and ridicule others.

To ensure your business stays lean you need to improve your operational systems as much as possible. The best people to communicate with are the staff themselves. Get suggestions and feedback from your staff on what could be done better, what practices can be improved, how you can be more efficient as a team, how you can reduce wastage etc. You need to engage your staff in this process to ensure their morale remains high. When they are given ownership and take part in decision making steps they will be motivated. Be in constant contact with your workers and get advice on how to improve your practices from the people who know the practices best.

When times get tough a lot of employers start to lay off their staff, however this is detrimental to the remaining staff's morale. To avoid this be sure to always involve your staff when looking at ways to further improve your business's bottom line and even ensure the survival of the business. It is better to pull your team together, share the issues and work towards a common solution. There is always more synergy in unifying staff than separating them. Everyone must be a link in the chain - just like any team.