The clock is ticking down

Starting with the US Thanksgiving holiday this week we are entering the holiday season and as businesses start gearing down a general sense of drift will be the norm.

The signs are that the first quarter of 2012 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 reviews.

How much inventory are you carrying? - rather than face a “fire sale” early in the New Year it may well be opportune 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 move into the early months of 2012 – make sure that your Company doesn’t become part of these statistics

Be on your guard

As the economic downturn continues to bite all businesses and organisations must remain alert to the potential for fraud.

Entrepreneurial owners of SME’s are a prime target for fraud as overseeing finances doesn’t always come naturally to them. If a founder is focusing mainly on the product or service being sold, and only minimally on administration, it leaves a business vulnerable to fraud.

It is vital to have systems in place to monitor all the company’s finances in a clear and concise format. After all it is never comfortable experience to find that someone is holding your wallet.

It is not only independent businesses that are vulnerable. UK Councils have been conned out of more than £7m by criminals using information put on their own websites under transparency drives.

The UK Audit Commission reported that Council officials were being tricked into making payments - intended for building firms and other contractors - into false bank accounts. Last year the Commission found that councils across England detected more than £185m worth of fraud - up 37% on 2009/10.

This problem will not go away so vigilance is the order of the day.

Time to boost morale

Whilst carrying out assignments for companies ranging from SME’s to publicly listed corporations, I am struck by the poor attitude of many senior managers towards the Company’s most important asset namely its Staff.

Presently we are being bombarded with negative news- failing economies, the squeeze on domestic budgets, the spectre of unemployment as evidenced by yesterday’s figures from the ONC showing UK unemployment rising to 8.3%..

This constant drip feed of bad news is having a very negative impact. Morale in the workplace at present is generally at a very low point and yet this seems not to have percolated into the mainstream of management thinking.

All too often the attitude of the management seems to be that the current backdrop will of itself be the motivating factor.

Obviously as companies struggle with their profitability, it is not a question of throwing money at the workforce but what is required is more of an attitudinal change.

Bringing the staff on board may well be as simple as communicating the company’s situation in a clear and concise manner rather than the heavy handed “if you don’t like it there are plenty of others ready to take the job”.

It is no coincidence that the companies who emerge stronger from challenging times have been able to do so largely as a result of the efforts of a committed and diligent workforce.

People are the main asset and as such should be valued accordingly. 

The Dragon pauses to catch its breath

Since 1978, China's economy has doubled every eight years. Today, the average Chinese person has some ten times the purchasing power they had just a quarter century ago.

China was the engine room powering the Global boom of the early 21^st century, however there are signs now that the Dragon is catching its breath.

October shipments from China rose 15.9% from a year earlier, down from a 17.9% growth in September and 24.5% in August.

Meanwhile, imports grew 28.7%, resulting in a trade surplus of $17bn (£10.7bn)

The data underscores growing concerns about the impact of a global slowdown on China's export-led growth.

European markets are crucially important to China but with European economies in a fragile state the implication for Export growth is obvious and the potential for the euro debt crisis to spread would result in a further decline in export growth in the months ahead.

Make service your USP

We are operating in times when everyone expects ultimate value for their cash be it the corporate customer or the man in the street.

It is a paradox that as times become tougher and business harder to win the level of service offered by many Suppliers is falling very short of acceptable standards.

From the frustrations of automated answering (devised surely to test anyone’s patience to the ultimate degree) to the failure to meet agreed delivery schedules Customers are left feeling that their business is not valued.

Little wonder that they choose to vote with their feet. Customer service is not a difficult act to pull off – in reality all that is required is to give the Customer the feeling that their business is important and they are valued not just “one of a number” or even worse a nuisance.

Those businesses that master the art of Customer service will emerge from this current difficult period all the stronger.

Survival of the fittest

The retail sector is particularly challenged at the present with the survival of many outlets dependent upon the results of the next few weeks pre Christmas trading.

The new buzz phrase in retailing is "multi-channel", loosely defined as a strategy that involves selling through stores, websites, mobile phones, catalogues, social networking sites, et cetera. Basically it is an all encompassing process designed to maximise sales revenues.

Not all business models can embrace this system but there has rarely been a time when the old adage of “work smarter” has been more relevant. As more and more obstacles are thrown up to threaten operating margins everyone in any commercial organisation must ensure that they are operating at optimum efficiency.

Retailers are pinning their hopes on “multi channelling” – but they are not the only sector having to radically re-think strategy in these turbulent times.

The inability to adapt to the requirements of the changing market place will inevitably see many companies joining the long list of corporate failures in the months ahead.   

Time to cut the Cruise control

During my various assignments one observation holds true – whilst there are very few bad businesses, there are many that benefit from a fresh input.

One of the biggest handicaps facing any business is inertia but when you are personally involved it is not always easy to change direction or take appropriate remedial action.

This is where an “outsider” can be of assistance – an objective appraisal can very often mean the difference between merely drifting as opposed to decisively moving forward