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Managing Through Challenging Times

Guest post by: Dave Ferguson

Article Overview: Tips to manage through this economy

Managing Through Challenging Times

Managing through Challenging Times (Aren't they all?)

This morning I walked into my normally very busy vet's office and after saying hello to the receptionist, made a comment to her that it looked slow today. She immediately blamed it on the current economic situation, which I found unsettling. I mean there are some things not going so well with our national economy and yes, regionally we could be in better shape, but, as a whole, our market has been affected less than most other markets in the country. Now that's a positive, isn't it? And people still have to take their animals in for check-ups, shots, etc. My point is that you can't go a few hours these days without meeting someone depressed by the economic news spewed out by the media non-stop. I say, focus on what's important to you and if you are a business owner or manager, your business is important, right? Turn off the TV and stop focusing on what you can't control (national economy, housing market, Brad and Angelina, the next Idol, etc). Here are several tips to help keep your focus where it should be:

1. Figure out how exposed your business is: You should look very carefully at your customer or client base to determine the likely effect on your revenue. You must be vigilant in measuring the effect of the loss of sales on your business. If you haven't done so already, measure your current business income and compare performance levels against the same periods last year.

2. If you don't have a strategy...get one: Hope is not a strategy, nor is putting your head in the sand and wishing it all goes away. You need a plan. If you have a business plan, dust it off and update it if necessary. If you don't have one, find someone that can help you develop one (like me). If you aren't planning, you're planning to fail!

3. If you are faced with a sudden financial and cash flow crisis, find a professional that can help you. Cash is the fuel that keeps businesses going. You need to have a detailed cash flow budget for at least the next 12 months.

4. If your cash flow problem is affecting your ability to pay bills, prioritize your payments to creditors and suppliers: Create a list of those creditors and suppliers that are essential to your business. Pay them first. Then negotiate terms with the rest.

5. Collect what you're owed: There are two quick ways to fix cash flow issues. Increase sales and chase money that you are owed. Think about offering small incentives for prompt payment or even consider accepting a settlement from someone who's extremely past due.

6. Figure out where you can lower your costs: Start by reviewing all you're current expenses. Figure out where cuts can be made but make sure the cost cutting measures won't damage relationships essential to your business.

7. Examine your inventory levels: Implementing good inventory controls allows you to minimize costs. You might want to start buying in smaller quantities.

8. Review your staffing levels: This is one area where you don't want to make "knee-jerk" reactions, as your staff is a valuable asset of your business and the long-term costs of replacing experienced employees can be very high.

9. Stay positive and figure out how to maintain sales: Focus on the positive and work to maintain or increase sales. Market turmoil can often lead to opportunities. Seize them!

10. Don't discount just because your competitors are: If you are considering discounting your products or services, make sure you can afford to discount and estimate the amount of time you can afford to sell at a discount.

11. Invest in your business and your team. Invest in your productive employees and manage the unproductive ones up or out. Considers sales training or just a motivational tune-up for them. Call me, I can help.

I work with all types and sizes of businesses. While many of them are having good solid income years, many businesses are experiencing slower growth and cash flow issues, as of late. When a slugger is in a hitting slump he usually works with his coach to figure out why he's not hitting the ball out of the park anymore. When your business is in a slump or just needs a tune-up, find a business coach to help you. They can objectively look at your swing and work on your techniques. In the end, you and your business should be hitting it out of the park again!. Have a great week!

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Article Tags: br 3, brad and angelina, business income, business owner, business plan, cash flow budget, challenging times, check ups, current economic situation, economic news, head in the sand, hope is not a strategy, housing market, national economy, performance levels, periods, receptionist, turn off the tv, ups, vet



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