Hold Your Breath or Go For Broke?

Added by Jacob Aldridge, about 1 year ago.

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I had the benefit last week of chairing an expert panel discussion addressing ‘Business in Uncertain Times'. The core question was whether, at this time, businesses and their owners should Hold their Breath or Go for Broke at the opportunities that exist.

Ultimately, of course, the answer from the panel was that it depends. I thought I would share with you what I believe it actually depends on, so that you can ask yourself the question, and more importantly develop a short-term strategy to address the current economic mood.

Hold Your Breath if:

You haven't recently examined the financial and emotional state of your business
You don't have a clear Vision for the business
Recent fast growth means you're frustrated or stressed in the business
You find yourself reacting to bad news or poorer than expected staff and client feedback

Focus on:

Taking stock - this can be a financial review or a full business examination. If you're too busy or want added perspective, look to commission an expert to help with this
Asking where you want to be - this could be a great time to discover you were heading in the wrong direction, or perhaps in no direction at all, and address that
Identifying the key needs and opportunities in your business - are there some small changes that can help greatly? Are there genuine opportunities for improvement or growth?
Managing your own energy - dire economic times can be draining, particularly for business owners and key executives. You can take responsibility for how you feel - and this may be the perfect time for a much needed holiday

Go for Broke if:

You know, with confidence, that the strategy will not in fact make you broke
You have a clear understanding of the businesses financials today and projections into the future
You've experienced this stage of the market cycle before, and learnt from that experience
You know, and are supported by others, that the opportunity before you is too good to miss

Focus on:

Understanding your key leverage points - what is it that you do well, which can enhance any opportunity in front of you
Communicating your intentions and purpose - you may be confident about the finances, but if staff are feeling nervous and kept in the dark then your expansion plans could appear reckless
Supporting key relationships - Client, Suppliers, Referrers, and Staff will all experience different things during the current economic climate, and your support today will lead to better relationships in the future
Leveraging the expertise of others - again, this may be within your business or from outside expertise

A downturn in the market - any market - gives a great opportunity for business to build for the future. Investment today, in the right areas, will lead to increased marketshare, profitability, and opportunities in the future.

And there are opportunities today. The decision you have to make it whether you are well-placed to seize those opportunities - because if you aren't, and you stretch too far, the best you can hope for is being a bargain opportunity for somebody who planned things better.

Comments

There are currently 4 comments about this blog.

Juliet Turnbull, about 1 year ago

Very timely - tomorrow I have a meeting with a partner of a property agency and today I have spent a lot of time thinking of questions to provoke his thinking outside of blaming the credit crunch, this has helped. thanks

David Addison, about 1 year ago

Hi Jacob. A valuable synopsis and timely article to promote strategic thinking. Thanks to my relationship with Shirlaws I look at the current 'downturn' in the market with optimism. It is a time when we should look at the services we offer clients and ask the question 'How can our SLA's bring efficiencies to our clients, thereby easing their workload, allowing their team to focus on priorities to increase ROI and productivity?' I think the opportunity can also be to ride the wave with potential clients, so that when you emerge in a growth phase you're the first contact the client makes to move forward. Avanti Events won some great incentive event business yesterday, a sign of good potential at the start of 08-09. Best regards David

Les Hercules Kalas, about 1 year ago

Very timely and very simple. Best Les

rerickson, about 1 year ago

Thanks heaps Jacob. This is perfect timing.A client of mine has asked me to help her with a presention to a Constructive Mentoring Forum for women.One of the areas they want covered is future planning for business i.e. How do they know when to move onto the next stage in their business. Regards Richard