12 Steps To Re-Vive Your Business (Part 2 of 4)
Re-Visit | Re-Tool | Re-Finance
Football teams have evolved over time. Players have become more skilled, bigger, and faster. The plays coaches called twenty years ago won’t win many games today. The great coaches have had to learn to manage their team differently if they want to continue to produce winners. Now’s the time to take a hard look at how you do business and if your current strategy is viable today. I received an email from a construction company owner asking what they could do to win more work. He stated that because of the economy, there were fewer projects to bid on, and there were often twenty or more bidders on each bid opportunity. I was shocked. What was this business owner thinking?
How can you make any money competing against twenty other companies for jobs awarded based solely on the lowest price? Obviously he had been somewhat successful in the past when work was plentiful and there was enough business for everyone. But in a tighter economy, the old strategy won’t work. He needs to change how he does business big time and RE-VISIT his business plan and what he offers customers. Offering the same things every competitor does creates no competitive advantage and no profit large enough to build wealth or a sustainable company. Is your business strategy viable in today’s marketplace? Will it build a winning company that works for you? It’s the right time to take another look at how you do business and what you can do to offer something different than your competitors.
The business world is getting more and more competitive. Even professional sports teams are doing whatever they can to cut out the fat. As a season ticket holder to the Anaheim Ducks hockey team, I have observed their ticket renewal process becoming super streamlined and efficient. I get an email to renew my tickets with several automatic payment plan options. No phone calls or personal contact. Everything automatic. And if I can’t attend every game, they give me the option to email my tickets to friends, sell them on their website, or donate them to charity. All with a click of the keyboard online.
What should you do to RE-TOOL how you manage your business to save money and increase efficiency? To streamline your daily business activities, perhaps you should consider using your website, technology, emails, or the internet to pay your bills, invoice customers, post shop drawings, order supplies, send proposals, market your company, track deliveries, schedule employees, communicate with customers, maintain vehicles and equipment, or invest your money.
The best professional sports teams usually are also the best funded and financed. A strong financial foundation gives business owners the opportunity to hire the best players, market better than their competition, try new types of business models, and take advantage of opportunities. Now is the time to take a hard look at your finances, your financial systems, and your cash equity investment. I often see small companies struggle when they don’t focus on making their numbers, have good financial controls in place, and are under funded.
By installing excellent financial software managed by an experienced accounting manager, you will take a large step towards building a better company. With these tools in place, you’ll be poised and ready to seize opportunities like finding property at a reduced price or other companies in need of a cash infusion. But if you discover you are actually cash strapped, you’ll have the financials to present to another company you may want to join forces with. By merging your company with a stronger one, the joint effort will enhance the financial viability and strength of the total entity. Keep your eyes open for strategic alliances and joint ventures that will make your operation better. Look for ways to RE-FINANCE your company via mergers and acquisitions. And seek investors who will strengthen your balance sheet to negotiate tough times.