The daily focus of a business should be on making sound financial decisions that add leverage to the business. As a consequence businesses will be able to thrive and achieve sustainable growth. For too long many business have operated in survival mode, without a true picture of the market or financial circumstances in which they are operating.
For any business to thrive and grow they will need to plan, plan and plan again. Present economic circumstances highlight the need to pay increased financial attention to a business. It is now more evident than ever the old adage that ‘cash is king’ is proving to be a truism. As a consequence the income and expenditure cycle of a business has been brought sharply into focus.
Whether you are a new business or an established business the present economic climate can prove to be challenging. The challenge is to develop a business model that will enable your business to thrive and grow. The future of your business will depend on the decisions you make. Consequently it will be necessary to become proficient in three critical areas of business, that is:
• Operational efficiencies
Rapidly changing trends in supply and demand cycles have placed a need on all businesses to balance efficiency and responsiveness in order to embrace opportunities. Crisis and opportunity are two sides of the same coin. It is unfortunate that a crisis for one business will represent an opportunity for another business. A key factor in this scenario will be the ability of business owners to retain a foothold in the marketplace.
Retention of market share will require innovation and new ways of adding value to whatever services or products are being delivered. Increasingly there is a need to have in place processes and systems that are flexible and able to respond to rapidly changing business conditions. As I write the car industry comes to mind as a good example where the laws of supply and demand are out of kilter. In essence being able to predict or understand the sales cycle of your business and its long term effect will be a crucial factor in whether or not your business is able to weather the current storm.
Traditional methods of conducting business via efficient but somewhat inflexible processes often leave a business grappling with yesterday’s problems, albeit at the lowest costs. Conversely responsiveness without efficiency facilitates quick action but inflates costs and disrupts processes. The ability is to intelligently sense and respond to changing market conditions is one of the reasons why a business is able to thrive and develop.
Often business do not seek the help, advice or assistance of industry experts such as business advisors, financial gurus or market researchers. A fresh pair of eyes can shed light on new realities that could be beneficial for your business. The absence of external advice and support could prove to be detrimental for many businesses. A business should always be searching for external support – who will you choose to help your business develop?