Growing Business In Tough Economic Times

Strengthen your core for the next upturn (strategize & train) >> during challenging and slow business seasons, there is a tendency for reduced employee activity. This is a blessing, not to worry. First, this will enable you to strategize with your top management to take advantage of the current business opportunity window. Second, you will find the time that you normally do not have to train your staff and make your team a super team. Special emphasis should be placed on your leaders and their capabilities in leading their teams effectively. Smart employers act to strengthen internally, emerging stronger than their sleeping competitors.

Build up resource levels cheaply >> a company we know uses softer economic periods to build up its inventory of raw materials at reduced market prices. Visionary property companies always seek to expand their land bank cheaply when property prices are challenged. This principle applies to other assets as well, including share market investments. Of course, this depends on how large your cash reserve is.

Negotiate better trading terms >> everyone wants cash now, but more importantly, everyone wants business. As such, this may be a good time to be brave and negotiate for better trade terms, that is, the length of time in which you are required to settle your payments. Keep in mind that the better cash flow arising from such a tactic is meant to leverage your company, not to spend on frivolous and non-urgent expenses.

Motivate against the tide >> most companies, during tough times, gloomily predict that the company and by extension its employees, will have to brace themselves. In happy contrast, good companies highlight the opportunities present in every business scenario, and motivate their people by pointing these to them. Leaders will play a significant role in achieving this goal, as even their everyday mannerisms and attitude will be observed and transmitted to their teams, directly impacting employee morale.

Strengthen your backroom >> one of the key and common weaknesses of companies is their internal organization. Poor or redundant human resource structures, lack of SOPs, dodgy safety situations and inefficient process chains all impact the smooth running of a business. In these times, conduct internal organizational health checks – using an external consultant if necessary – to build and streamline systems & processes.