leadership

Facing the challenges of 2008

SmartCompany /

There are important lessons in all the economic doom and gloom – not least of which is to stay focused and optimistic.

 

Last week I wrote about the importance of setting goals to ensure that the year has the possibility of being rewarding and satisfying.

 

In setting our personal and business goals we cannot ignore the economic circumstances facing us – but I do believe we should see these as an opportunity rather than a block to success.

 

A few ideas to keep you focused and optimistic!

 

The so-called US sub-prime crisis appears to be all about banks and other lenders lending more than responsible amounts to people who simply could not continue to repay their mortgage – it seems to be about short-term greed and preparedness to sell a product presumably at a higher rate to people who could not afford what they have committed to.

 

I have not read much about how these people got into these circumstances, but it seems that there is always a market for aggressive lenders as consumers increasingly demand to have everything now.

 

Some of the big lessons for us:

 

  • Make sure your borrowings are only for assets and cashflow, and that your assets are valued conservatively.
  • It may be a good time to pay off some debt, as rates may rise again.
  • Understand exactly where and how your business is making money and focus on the most productive and sustainable areas.
  • Communicate with both your suppliers and customers to determine their plans and how you can assist them.
  • Communicate clearly with your bank; keep close to your banker.
  • Spend only on those areas of your business that are productive.
  • Do not cut your sales and marketing budgets, just make sure they are effective.
  • Diversify your client base – dependency on one or two major clients is always dangerous.
  • Secure any contracts you may have with clients.
  • Have contingency plans.
  • Manage your cashflow tightly.
  • There may be some bargains out there in property, shares, businesses.
  • Keep the situation in perspective.

 

As you can see, all of the above are things we need to do to run a successful business in any economy – when things become a little tighter, well-run businesses have a greater opportunity than those who have simply made profits despite themselves.

 

 

To read more Marcia Griffin blogs, click here.

 

High Heeled Success is Marcia Griffin’s latest book, and is a frank account of building a business from a solitary sales person to a multi-million dollar business with 4700 sales consultants around Australia and New Zealand. It recounts successes and failures along the way and was written to inspire entrepreneurs-particularly women to triumph in business.

High Heeled Success (Kerr Publishing) is available directly from Marcia ([email protected]) or Domain Books www.domainbooks.biz.

 

Advertisement
SmartCompany

SmartCompany is the leading online publication in Australia for free news, information and resources catering to Australia’s entrepreneurs, small and medium business owners and business managers.

We Recommend

FROM AROUND THE WEB