Let’s have a positive story !!
We all like a good story – especially if we can learn from it, it is a local story and relevant to our situation
As well as running my own Business Consultancy I am a voluntary mentor for Business mentors New Zealand
Recently I was asked to help a business that is a supplier to the Tourist industry. As you can imagine this business has been pretty badly bruised but the owner has approached the consequences from C19 with a clear and well planned path.
The owner has undertaken a complete review of the business and recalibrated many aspects of it to match current circumstances. As we can all learn what has been done and the process that has been undertaken I note the main issues that had to be addressed.
The key elements that were addressed included – the landlord, the competition, company structure, retaining qualified staff, reducing operational costs, and maintaining productivity at a lower revenue, and delaying new product and services.
Some very bold moves resulted in a new totally innovative operational process, a somewhat cheeky approach to competition and a very hard decision to delay Innovation.
As a result of this data-based decision making the company is now profitable at a lower level and well placed to take advantage of growth, when it comes.
There is also a detailed plan ready to put in place when market circumstances change. This sort of story can be applied to any SME. Each one will have differences but will all have common issues.
The key issues for this business were:
- Leaving the uncertainty about timing and extent of when the business will return, out of the equation but leaving the plan able to take advantage of changes when they occur
- Arranged for the availability of working Capital and Cash Flow when required. This meant we had to have a Business plan including Profit and Loss, Forecast, cash flow and most importantly a regular review of current business results. Having all this info to hand for the Bank ( or other sources) gives a strong positive feel about the owner and the business
- Operational issues such as Geography, Stock, holding, stock control and useable space
- Some price modelling was completed with a more flexible plan being put in place
- A review of the Unique Selling Proposition was undertaken – which resulted in a slight change of direction that no one else could follow
Not a bad story eh!
If you would like some help with your business please contact me for a free 1 hour assessment and report
Robin Martin
P.S. This article is part of my Secrets of Success series, aimed at helping business owners and entrepreneurs with some of the key components of business success. The insights I wish I’d had at the start of my business career. I hope that by passing on these little gems of knowledge I can give you some support and help you along the pathway to growth and prosperity.
