The media is focused on an impending economic downturn, with some even predicting a recession. Time will tell.
You need to make sure you’re ready for whatever happens, which means focusing now on getting your business in shape for what might be a shaky time ahead.
I really want to encourage those of you that might be experiencing a bit of a downturn in business to take a good look at what you can do. Whether it’s an issue caused by internal or external forces, then you really need to face up to it and take decisive action.
The easiest thing to do is to put your head in the sand. But being a leader isn’t about taking the easiest course of action, it’s about taking the right one.
One of the things that comes out again and again is that almost all of us are carrying some fat, some dead wood – call it what you will. And generally (but not always), it’s people – people that if they weren’t there any more, you wouldn’t miss a beat. People with big salaries, cars that attract FBT and all the on-costs like payroll tax, workers’ comp insurance and so on. People that take up space, use a computer, software, electricity.
Just this past week, we built a decision tool for a client. By the time the dead wood was removed, we had carved $750,000 out of the cost base. Or added $750,000 to the bottom line, if you prefer to view it that way. And saved the jobs of the other 12 staff members who could have been dragged under the waves by inaction.
Of course, the client waxed and waned. That’s only natural. We’re all human and we all want to be liked. It’s real people with real lives we’re talking about so the reality is harsh and there’s no getting away from that.
But do you know what – both of the owners knew who should go. There was no disagreement on that. Think about that – they already knew but they hadn’t done anything about it!
Every month you wait is a month that damages your business. Can you afford to keep doing that? I don’t think so.
If you want to prepare your business now for tough times ahead, call us on 1300 656 141.