Entrepreneur Advice: Why A Full Table is the Fastest Path to Success:
Summary: Times are tough and every business owner is worried about what the future might hold. It's hard to know what to do when you don't know what's going to happen. You could make a lot of changes and spend a lot of money, or you could just wait it out and see what happens.
I'm here to tell you that there is a third option – you can recession-proof your business. With some smart planning and strategies, you can make sure that your business is successful no matter what the world throws at it.
So don't worry, be confident, and listen in for these tips!
How confident are you that you can predict what will come to your business in the next year, six months, or even week?
According to a recent study, a majority of you would say very.
The results of a recent business survey showed that 73% of small businesses felt optimistic about the future, despite not being able to predict what could unfold. It’s my belief that the false sense of control that business owners felt leading up to 2020 is part of the reason that we’re in the position that we’re in. We’re too confident, too blinded by optimism.
The reality is that none of us have a clue what could happen next. Jim Collins emphasizes the unpredictability of the modern world and future in this quote:
“We live in a time where there will no longer be a new normal. There will only be a series of decidedly not normal episodes that we can neither predict nor govern.”
The rate of change across the world is happening at an exponential rate. In fact, scientists and tech experts alike argue that every four years from here on out is worth 200 years of previous change.
This is mind-blowing!
That being said, it’s time to get realistic with ourselves. It’s time (especially given the current geo-political climate) to put in the work to create a strategic plan, a “safety net” for your business that can mitigate against any and all future outcomes.
Let’s focus on what we CAN control so that we can protect ourselves better from what we CAN’T.
Overall, there are two primary ways of doing this effectively, the first of which (which I am going to refer to as “Defensive Practices”) we will get into in Part 1 of this blog.
Defensive Practices
Defense in your business is all about protecting, preserving, and stabilizing. Here are four ways of helping you to do just that:
1) Start now!
There is no magical time – Today is the best day! So, regardless of where you’re at or how far behind you feel, just start. And then do it again tomorrow. This is a process…and that process can’t begin without that first push of momentum.
Bottom line: There is no substitution for action.
Getting started is the first step in a good defense.
2) You need to get honest.
Often we are fooling ourselves, and we have elements in our business that can capsize our business. Is it your–
To help answer these important questions, you need to find the most critical person you know and bring them into your business. Everybody has that one person that punches holes in every idea or pushes every button to see what doesn’t work; it’s up to you to find them and bring them to the table. If they see something that isn’t working or doesn’t make sense, they’ll give it to you straight. It might not always feel great, but it’s what you need. Because if you can’t take an honest hard look at your business through your own eyes, you need to find somebody else who can do it through theirs.
Bottom Line: Are you able to weather the storm? Get honest about what isn’t good.
3) Making a plan to mitigate all of the possible obstacles.
You need to create as comprehensive of a plan as you possibly can.
Get serious with it…and don’t leave anything out. Start by creating a list; write:
“What happens if .. “
Another vital part of this process is understanding and defining your key leading indicator. This is an outcome or problem within your business that acts as an early warning sign that some aspect of your process is crying out for help.
4. Build up your cash reserves.
There are great benefits to executing predictive cash flow, but preparing for the uncertain future is likely one of the most important.
As you’re contemplating how best to build up your reserves, ask yourself this:
Next, consider which of these aspects of your business you could ‘fatten up’ a bit, especially during the times when sales are spiking and things are running smoothly.
(You know what they say! Make the hay while the sun is shining!)
Note:
Not every business consultant will tell you this, but there are tax ramifications to ‘fattening up’ a little bit. I will tell you, however, that it always pays off. When you have cash coming in, you will change the nature of cash flow in your business. You can really do it at any time, but you will see a much bigger impact when you do it when times are good.