Life is great, the family have just spent the last two weeks holidaying in Hawaii and all the while the business kept cranking and paying the bills.

It’s easy to become complacent with everything just flowing nicely.

 

Apparently a lot of people are enjoying this very scenario whilst many reports are saying plenty of businesses are going to the wall.

 

Where is your business now?

 

 

The USA has caught a cold and a massive storm front is slowly making its way to our shores and if we are to believe part of what is being said we really should be prepared for the ongoing effects.

 

Let me ask you; is your business recession proof?

 

Recession proof, what’s this fellow talking about we aren’t in recession. Well may be we aren’t now and maybe it won’t happen however wouldn’t it be a good thing to be well prepared in the event of any such happenings. Any expert will agree that it’s a lot easier to prepare a fire break then it is to put out a fire, especially if that fire is threatening your lively hood.

 

You know what I mean, don’t you?

 

So what do we need to do to prepare ourselves for an economic downturn in business? A good place to start would be to know where the business is right now. What is the annual turnover, what are the costs of sales, how much are over heads?

 

What are you left with, are you happy with the margin?

 

Has there been an erosion of his margin over the last few years, or do you really have no idea what has happened?

Alarmingly many business owners in the SME sector don’t know what the figures are within their respective enterprises yet continue along their merry way oblivious to the darkening skies. You will agree with me that conducting an analysis of your business is a great idea that should be completed prior to feeling those first gusts of wind from that imminent storm.

 

Part of my Profitune tool box looks at margin squeeze which has been a major concern for SME’s in the last decade. This has been exacerbated at an increasing rate over the last few years with the resources boom placing pressure on interest rates, insurance, housing, staffing, fuel costs, along with many other factors. The majority of pressures on margin are generally outside influences however we need to recognise that a component of this may lie within. And by this I mean the enemy within. Owners, managers, salespeople, could be underlying areas for concern when looking at the overall health of a business where margins are affected. Many of these positions may be held by the same person so it is relevant to recognise these areas so that suitable resolutions can be employed.

 

As I pull out the draws on my toolbox I see that pricing, discounting, sales, lapsed customers, referrals and testimonials, new customers, existing customers, branding, marketing, internet marketing, cost of sales, productivity, inventory, overheads are many of the areas that need to be looked at when analysing any business.

 

Wow that sounds like a lot however I’m sure you have the systems in place to be able to get this done quickly. I didn’t even mention the survey and market research that you will also conduct prior to this downturn either.

Systems, did I mention that all good businesses have great systems in place so that when ever any of these factors need addressing there is a ready made solution at hand. That solution may be a mentor, it may be a coach or it may be a library of information however it is readily available now and not one day. After all we know one day never seems to come around yet one thing is for certain there are storm clouds brewing on the horizon.

 

It’s up to you NOW, get out the dozer and start cutting a fire break or wait a while, employ some more staff, give them a hessian bag each and start beating out the flames. With any luck you should get the flames out before your business burns down. Each and everyday that you go without analysing your business you’re more than likely going to need those bags. Over the coming weeks I will write some more about recession proofing your business plus there will be a weekly pod cast delivered.

 

Do you have a few weeks to learn more about this or should you be contacting me NOW to find out more.

 

Have fun.

 

Bryce