If you own a small business, at some point you’ll experience an economic event outside your control that negatively impacts your business. You need good management and leadership skills so your small business survives an economic crisis.
Many owners believe their only job is to grow, grow, grow the business. But there are times when you need to back off in order to assure your business survives an economic crisis. But, how do you do this?
Make the Right Decisions so Your Business Survives an Economic Crisis
When you’re in the heat of battle of a crisis, money will be tight, but don’t let it cloud your judgement. Frequently, the reaction when the business is in a downturn the first reaction is to focus on finances. So, owners seek advice and guidance from their accountant or CPA.
Be careful, these advisors went into this field because they have a specific mindset. The advice you get will be financially focused and financial problems are most often caused by operational issues. You’ll ge advice that sounds like this:
- assess your cash flow cycle
- review your receivables levels evaluate the likelihood of payment
- rank your accounts payable and decide what you can pay and when
- Stay in contact with your vendors and suppliers regularly
- Cut back on added expenses like bonuses and other nonessential payments
- Create a cashflow statement with different possible scenarios to evaluate
This is good advice, however it’s only part of the problem/solution, and it is defensive posture. I liken this strategy to a turtle pulling back into its shell. This approach doesn’t move you forward; it keeps you where you are hoping you can weather the storm.
You need something more operationally focused to fix your root cause problems if you want to support a economic crisis. A fractional COO provides a more forward-thinking, offensive mindset. Attacking the root- cause of your cash flow problems helps you survive an economic crisis and sets you up for a more accelerated recovery on the other side of the crisis!
Taking Offensive Action to Get Through an Economic Crisis
Solving root-cause operational problems to fix cash flow problems is a job for Tuning Your Revenue Engine (TYRE). Watch the video below for an overview:
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Monitoring the activity of your operation shows you where it’s slowing down. Now you can quickly address problems within your control, or identify where shifts in the market occurred which are completely out of your control.
Armed with this information you can search for the RIGHT solution to fix your REAL underlying root-cause challenge. Fixing root-cause challenges increase your efficiency, saving you time and money which results in improving your cash flow.
Now, these root-cause fixes become a permanent part of your operation! They result in accelerating your growth and profitability when things begin to free up in the economy, your business is better than before allowing you to more profitably scale faster. So, you survive the economic crisis and set your business up to capitalize on the recovery too.
How You Can Take Action During an Economic Crisis
To begin you must first understand where your chokepoint exists and find the root-cause problems causing it. Apply the revenue engine model to your business is the immediate way to start. Calculating your simple operational metric, arms you with the information you need to make proactive mount an offensive attack during an economic crisis and accelerates growth in the good times.
Tuning Your Revenue Engine offers several options at various price points. Select the option that best suits your budget and comfort-level in applying the operational model yourself.
If you want immediate impact, hire a seasoned fractional COO to begin immediately assessing your operation with the Revenue Engine Performance Analysis. You get a 20 pages Revenue Engine Performance Report full of critical operational information and a list of immediate actions you can take to begin improving operational efficiency, reducing your overall cost structure, and improving your overall cash flow with this cost-effective fixed priced engagement.
If DIY (do it yourself) is more your style, then signup for our 24 x 7 online TYRE Masterclass. Figure out your operational metrics by learning to use theses simple, yet powerful tools and schedule time with a BGS coach at a reduced rate to if you get stuck.
The most cost-effective and least time-consuming way to get started is by scheduling a FREE 30-minute Revenue engine Performance Checkup. Just find an open time on the calendar below and schedule your FREE 30-minute consultation.