Inertia is not an option

The macho mantra “failure is not an option” is widely heard these days. I think a more relevant maxim for these times would be, “Inertia is not an option”.

Very few companies implode like a supernova. The distress signals are visible for some time before the flame out.

When faced with mounting problems it is obvious that the solutions will of necessity be painful. However, radical and decisive surgery is often the only way to ensure a patient’s survival.

Many companies adopt the Mr Micawber attitude that “something will turn up”. In the overwhelming majority of such cases the only people likely to turn up are the administrators/liquidators. Be it merely inertia or fear of addressing the issue the outcome will remain the same.

Collect some Golden Apples

How do we boost the bottom line? – without doubt the most hackneyed question in business. There are 2 obvious solutions, (a) Cut operating costs and (b) Boost Revenue. If you’re the FD you’ll probably aim for the double.

The Sales Director only has one shot in his/her armoury namely increase sales. Sales targets can always be raised but a sense of commercial realism also needs to be applied.

If you are marketing a totally unique product or service the task is easier but for the most part there are many companies offering a similar range of products in a broadly similar price range.

If Sales people are required to shake the tree and collect the Golden Apples then it is vital that they are not only supported with a superb product but an equally impressive after sales service.

Deckchairs on the "Titanic"

How often do we ignore the obvious and subsequently ask ourselves “why did that go wrong?”

A large number of companies fail to address problem issues early enough to avoid an oncoming crisis.

The signs of a troubled business are all too apparent – these include lack of controls, lack of strategic vision, a demotivated workforce and obsolete or valueless stocks etc

Instead of grasping these nettles, often the preferred option is to engage in a totally pointless exercise such as a rebranding exercise or the launch of another product range destined to fail for the above reasons.

The operating style of many doomed companies can be likened to the exercise of rearranging deckchairs on the “Titanic”

Your customer needs you!

Over recent years rapid advances in technology have transformed the way we do business. Our everyday business tools would have been regarded as flights of fancy not so long ago.

With the unstoppable rise of e-commerce come challenges. Perhaps the biggest danger is the lack of personal contact between a company and its customers. Obviously this is not an issue for an online retailers selling products over the net and being paid via a Debit Card or Pay Pal etc.

However, there is an increasing tendency for B2B sales to be concluded by email or even SMS. The personal element has been lost and so has the identity and customer relationship. The surest way to avoid problems is by knowing your customer and understanding their business. This relationship and mutual understanding is not possible to maintain thru a key pad and email ordering system.

Would you pass the Stress test?

The news late last week that a number of European Banks had failed the stress test comes as a timely reminder that all businesses operating in today’s climate need to have constant and rigorous focus on their commercial exposure.

Against the current competitive background it is very difficult to contemplate turning away business especially from a customer of long standing. Many times however, the best business is that which is left to competitors.

It may well be that turnover suffers when stricter controls are in place over such elements as payment terms and credit limits.

The reward for such fiscal discipline is obvious. Avoiding defaults by customers not only protects the company’s bottom line but also works wonders for the stress in your own life

Are you sitting comfortably?

Running a business in today’s environment is a complex affair – it has been likened to playing 3 D Chess.

Particularly for the owners of SME’s it has never been harder to keep track of the various elements which are buffeting the business.

Now might be an appropriate time to run a check over those areas of the business most likely to cause problems in the coming months.

It is a self evident truth that many a crisis could have been averted by timely intervention. This is where an independent appraisal can identify areas of potential concern but more importantly the ways and means by which to address them.

The question that needs to be answered initially is – am I sitting comfortably?

Looking for a UK presence?

If you are looking to market your product in the UK one of the deterrents may have been your perception of high operating costs.

There is no doubt that to commission and run a UK base can prove costly. The lists of outgoings such as rent, communications, staffing costs can prove rather daunting, particularly in a start up situation where income streams are lagging far behind these charges.

This is where we can assist you, as an established independent company, we have experience of representing overseas organisation in selling product into the UK. In addition to opening up new markets for your products we can also police the logistics and payment of your invoices.

An introduction to our activities can be seen on our web site www.glbconsulting.co.uk or alternatively why not contact me at gordon.blackburn1@btinternet.com to arrange a meeting to discuss how we can assist you