What did you say?... Forget The Economy!

Looking back on 2011, we can safey say that it was not a great year for business. For most it was a year of cash flow shortages, late payments from customers, staff reductions, and even closure. And then we have the problems caused by the lack of available credit via the financial institutions... Say no more... The Global economy still shows no real signs of improvement, and recent talk of Ireland re-entering recession does nothing for our business confidence. We read the opinions of the "experts", (Economists), whose "guesses" we rely on so that we can make vital business decisions, and they are unable to tell us what to realistically expect for 2012. But then, did they ever? Our government announced a budget a few short weeks ago, and while it was generally welcomed by the business community, it does nothing to inspire positivity.

Your Own Economy!

Yes, the overall economy has a significant effect on your business. The amount of cash that your customers have to spend determines your turnover. However, there are many things that you can do with your business to help improve profitability. When was the last time you looked realistically at your market and where your business is positioned in it? How are you dealing with improving efficiency, without reducing effectiveness? How are you handling your debtors ledger?...

Regardless of this recession, we all have to manage our businesses properly, ensuring that we are always making the right decisions, at the right time. As business owners, we need to become experts in Strategy, Business Development, Productivity, Account Management, etc., etc. Consider outsourcing some of these functions where you feel that better results can be attained.

The Mortal Sin...!

Throughout 2011, I have engaged successfully with numerous businesses, all operating in very different sectors. It is not unreasonable to say that many have suffered form the common "symptoms" of recession. There is however, one particular issue which needs to be tackled before the rot sets in.... Over Capacity...!

During the glorious boom times of the faintly remembered Celtic Tiger, many companies made significant investments in their businesses in order to achieve the dizzying demand for their goods. Brilliant while it lasted, this one factor has caused serious problems for their businesses. The immediate reaction of those who have made such investments is to do their utmost to fill the capacity shortfall. This can be achieved with focus on increasing market share, buying vulnerable competitors to get their customer book, massive investment in marketing, etc. However, there appears to be no realistic consideration of a reduction in capacity, even when this is possibly the most sensible strategy to pursue. Get help to assess this area. When action is required, take action, promptly.

Hard V's Soft: An Outside Perspective...!

As business owners, you will all be aware of the need to keep tabs on the "Hard" aspects of your business. The facts, the ledgers, the P&L, etc. Sometimes the "Soft" aspects are completely ignored. The human side of business has a significant effect on your organization, and by measuring the gap between where you are and where you should be, you can realize significant improvements to how your business performs by implementing the latter. This is an area where your business can benefit by engaging with a consultant who specializes in Organizational Capability.

Note: Every business can benefit from regular assessment of the Capabilities of their Organization. Reviewing both Hard and Soft competencies ensures that your business is on the right track with regard to your objectives and the requirements of your market. Contact Us for practical advice on these areas.