Failing to act - Acting to fail

The macho mantra “failure is not an option” is widely heard these days. A more appropriate 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.

Go for Growth

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.

Keep ahead of the game

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?

Sometimes the best business deals are those you turn down

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 removes the stress from your own life

The old truism - Money makes money

There is no shortage of ammunition for the gloom merchants at present. However, these current market conditions underscore the old adage that “cash is king”.

Just as was seen during the Great Depression of the 1930’s there are opportunities for those individuals and companies who find themselves in the enviable position of being positioned to operate in a cash-starved market.

There will be opportunities to acquire shares at very attractive levels whilst failing companies will be up for grabs at drastically reduced prices with the prospects for consolidation or spinning their assets for more cash.

 It sounds like a pretty simple model, but then, so are many of the best ideas.  

Time to tighten up

The holiday season is now behind us and as businesses start gearing up again, a general sense of reality will start to take its place.

The signs are that the last quarter of 2011 will be a difficult time for business as Consumers further reign in their spending. Without doubt now is the time to tackle potential problem areas with some effective housekeeping.

How much inventory are you carrying? Rather than face a “fire sale” it may well be prudent to lighten up now with some innovative marketing strategies.

How is your cash position? With the ominous backdrop surrounding financial institutions and Governments alike, don’t expect the Banks to readily provide additional finance- it is an absolute priority to maintain positive cash-flow and this can only be achieved by keeping Debtors under control.

Undoubtedly, the casualty rate will climb as we head towards the end of 2011 – make sure your Company doesn’t become part of these statistics

Are we about to hit the buffers?

Current economic data illustrates the very real danger that the fragile economic recovery could be derailed.

It is vital to maximise your profits whilst avoiding locking your company into increased overheads

This is a time for a root and branch analysis of your business. As an independent Consultant I can give your business a full evaluation and provide you with a range of successful sales strategies and cost saving efficiencies.

Why not check out my profile at http://uk.linkedin.com/in/gordonblackburn