How do you open a new business in a bad economy?
You can consider sharing a space with an existing business to cut costs
A food preparation business can hold a kids summer camp where the kids prepare meals for their family dinners.
These are just a few ideas utilized in Tallahasee FL this past year.
See video
If you have a business that is suffering in the recession, you should take a look at what you can do to cut costs. If you have a Sports Academy or Martial Arts Studio that is closed on the Sunday, consider leasing space for a day to a fledgling church.
If you are a Mary Kay consultant, you can do wedding and special event makeup.
If you sell kitchen items and do lots of food demonstrations, maybe you should consider catering parties.
Let's brainstorm! If you run a business and could use some ideas to expand your niche, leave a comment and maybe we can come up with some ideas together.
Read: The Girls Guide to Building a Million-Dollar Business
"Women are starting businesses at twice the rate of men because Corporate American just doesn't get it."
We have to raise young children and event take care of our parents and our jobs need to be flexible enough to allow that. In addition, because we are so smart and saavy, we can recognize problems in business and come up with solutions... these solutions often turn into our own businesses.
Our only obstable is ourselves. You need to admit you want to create a million dollar business and to be able to find resources.
Author interview here:
www.ahermitt.com
We have to raise young children and event take care of our parents and our jobs need to be flexible enough to allow that. In addition, because we are so smart and saavy, we can recognize problems in business and come up with solutions... these solutions often turn into our own businesses.
Our only obstable is ourselves. You need to admit you want to create a million dollar business and to be able to find resources.
Author interview here:
www.ahermitt.com
Are you blogging
Blogging is a very important part of the at home business. It is a way to step out into the world and interact with potential customers. It is a way of gettin business to come to you.
"Moms have always had a lot of power in the marketplace, and now the so-called mommy bloggers are really getting noticed. AP Personal Finance Editor Trevor Delaney explains. "
Two years ago, I wrote an article entitled "Why blog for business?". It is still quite valid today.
Full article here:
"Moms have always had a lot of power in the marketplace, and now the so-called mommy bloggers are really getting noticed. AP Personal Finance Editor Trevor Delaney explains. "
Two years ago, I wrote an article entitled "Why blog for business?". It is still quite valid today.
Years ago, it seemed that having a journal connected to a business would be way too personal. Who would read your journal and purchase something from you? Well times have changed.
Full article here:
How's Business?
"Business has been tough for many companies, but recent reports have shown that businesses may be turning the corner... The worst may be over"
How is business going for you?
Personally, I have had to adapt and adjust and even change gears and focus to survive. I am considering diversifying when I have always preached on staying focused on one core business.
What have you had to do to survive? Talk back.
Obstacles to Success – Part 2
As mentioned in my last article, “obstacles cause us to lose momentum as we are trying to achieve our visions and goals. They often make us feel stuck. And sadly, the longer we feel stuck, the more likely we are to give up on whatever it is we were striving towards.”
There are two kinds of obstacles: external and internal. The best way to explain the difference is by over-simplifying. External obstacles are things which are out of your control that get in your way. Internal obstacles are things which you can control that get in your way. Here are a few examples of each:
Types of External Obstacles (things you can’t control):
~A meeting you were not in charge of runs late, causing you to have to reschedule something that was important to you.
~You have been seeking a specific career move, but do not know the right people to open doors for you.
~Your car unexpectedly needs to get fixed, forcing you to dip into the money you were holding for something else.
~You had full intention to finish a project over the weekend, but a friend called urgently needing your help with a personal situation.
Types of Internal Obstacles (things you can control):
~You desire to deepen a friendship with someone you know casually, but are unsure if that person will like you for who you really are.
~You have always wanted to learn more about “X,” but can’t figure out how to carve out time in your schedule to begin taking classes.
~You want to accomplish “X,” but your fears keep getting in the way.
~Negative self-talk prevents you from moving forward towards your dreams and goals.
When you suddenly find an obstacle in your way, take a moment to figure out if that obstacle is internal or external. If it is external, create a Plan A and a Plan B so that you have an alternative ready for any unexpected situations that might arise. If the obstacle is internal, commit to investing in any resources you need to overcome it.
Ask yourself:
1. What external factors will your plan have to account for if it is going to work?
2. Is there one key obstacle which if you conquered it would make a decisive difference in reaching your goal?
3. Relax for a minute and pay attention to what’s going on inside you. Where do you feel pressure or strain/stress around this idea or situation?
4. What’s driving your responses?
5. What belief is behind your responses and how well is that belief serving you?
If you commit to analyzing your obstacles to determine if they are internal or external, and then do whatever it takes to overcome them, I guarantee you’ll find it easier to accomplish anything you set your mind to. Having a support network of people who you can bounce ideas off of, receive honest feedback from, and hold you accountable for the decisions you make will also help you continue to move forward towards your intended results. If you do not have a support network of at least 4 - 6 people, create one now.
Have a wonderful day, and remember to keep your eyes open for all the exciting possibilities within and around you!
Kris Cavanaugh, of Transformation Journeys, is a certified coach. Kris provides life coaching services for mid to senior-level professionals who are stuck or overwhelmed and want to take back control of their lives. Unlike most life coaches, Kris employs a very business-like, strategic planning approach and structure that empowers them with the ability to quickly move forward through difficult obstacles to achieve their goals and life visions more easily and consistently. Kris' clients experience a higher quality of life by the end of her coaching program, allowing them to gain a deeper sense of well-being and satisfaction in every area of their life. To receive a FREE "Living Your Life On Purpose" email series or to schedule a "Design Your Life" meeting, click on http://www.transformationjourneys.com/ or call 404-551-3601. A full biography can be found in the "About Kris" section of her website.
© 2009 Transformation Journeys Inc.
WANT TO USE THIS ARTICLE IN YOUR EZINE OR WEBSITE?
You can, as long as you include this complete blurb with it:
Kris Cavanaugh, of Transformation Journeys, is a certified coach. Kris provides life coaching services for mid to senior-level professionals who are stuck or overwhelmed and want to take back control of their lives. Unlike most life coaches, Kris employs a very business-like, strategic planning approach and structure that empowers them with the ability to quickly move forward through difficult obstacles to achieve their goals and life visions more easily and consistently. Kris' clients experience a higher quality of life by the end of her coaching program, allowing them to gain a deeper sense of well-being and satisfaction in every area of their life. To receive a FREE "Living Your Life On Purpose" email series or to schedule a "Design Your Life" meeting, click on http://www.transformationjourneys.com/ or call 404-551-3601. A full biography can be found in the "About Kris" section of her website.
Obstacles to Success – Part 1
Everyone has an ideal vision of how they would like their life to be, and typically obstacles always appear which make it more difficult to make those visions a reality. The easy part is expecting obstacles to get in the way of what we truly desire. The real challenge is to investigate the reason behind the obstacle and find ways to overcome it.
Obstacles cause us to lose momentum as we are trying to achieve our visions and goals. They often make us feel stuck. Sadly, the longer we feel stuck, the more likely we are to give up on whatever it is we were striving towards.
The best thing we can do when facing an obstacle is to consider the obstacle a wonderful opportunity to learn something new about ourselves. Yes, you read that correctly - obstacles are a WONDERFUL way to help us improve our personal development skills. I can attest to that personally.
There have been times in my life that I set out to achieve or obtain something that was very important to me. Inevitably, along the way, I encountered obstacles both big and small. Sometimes the process of overcoming those obstacles helped me improve personality traits that needed to be adjusted, and other times the process uncovered new abilities I didn't even know existed. For me, it's always a neat experience to look back and see how I've changed for the better during a challenging time. My attitude about obstacles is my biggest asset: I don't usually like them, but I always respect their ability to make me a better person over time.
One of the reasons the coaching industry has been so successful over the last decade is because people are genuinely tired of being stuck in whatever circumstance they are in. When that "stuck" feeling gets too overwhelming to ignore, people often invest in a coaching program to help them move forward. I always tell my clients before they start their coaching program that the change process will often be difficult. Below is a section of my contract that I ask my clients to read and sign, just to make sure they are aware of what it will take to successfully achieve the life they want. Note the bold area in the second paragraph which specifically addresses the obstacles they will encounter:
------------------------------------------------------------------------------------------------ "Coaching is a process full of thought provoking questions, leading to deeper insight and direction, and ending with strategic plans to achieve your dreams and goals. This process will be successful if you commit to doing the assigned homework, utilizing the tools and resources provided, and most importantly, working on the action plans established.
You are investing in this coaching program because you desire changes in your personal or professional life. It is important to remember the change process may bring periods of intense joy or intense discomfort. As you are experiencing the forward movement of change, celebrate whichever period you are in - because it means you are getting much closer to where you desire to be in your personal or professional life.
Finally, as your coach I will ensure your success by committing to providing a safe environment in which you can be yourself, and experiment, fantasize, and strategize about your life and choices without limitation. I will challenge you to step outside your comfort zones to tap into your potential. I will speak the truth as I see it, even if you may not like what you hear (because my job is to ensure that you stay on track with the vision for your life). I will also keep our conversations confidential so that you are free to express yourself however you are feeling in the moment."
------------------------------------------------------------------------------------------------- The bigger your dreams, the more obstacles you will inevitably face. How you handle them is the often the key factor towards your road to success. So the next time you are facing an obstacle, take a deep breath and focus on what you can learn instead of the "pain" you are currently feeling.
In Part 2 of this series (titled “Obstacles to Success – Part 2”), we will discuss the two kinds of obstacles people often face: internal and external.
Identifying & Tackling Obstacles Exercise
Think about a current obstacle you are facing: a circumstance you are tolerating, a difficult conflict you are struggling with, or a change you don’t want to make, but know you need to.
~What is stopping you?
~What makes this hard to get done?
~What one resource or tool would make all the difference if you had it?
~What’s the worse-case scenario if you did decide to tackle this issue once and for all?
Spend time thinking about the answers to those questions, and let me know if I can help you in any way.
Have a wonderful day, and remember to keep your eyes open for all the exciting possibilities within and around you!
Kris Cavanaugh, of Transformation Journeys, is a certified coach. Kris provides life coaching services for mid to senior-level professionals who are stuck or overwhelmed and want to take back control of their lives. Unlike most life coaches, Kris employs a very business-like, strategic planning approach and structure that empowers them with the ability to quickly move forward through difficult obstacles to achieve their goals and life visions more easily and consistently. Kris' clients experience a higher quality of life by the end of her coaching program, allowing them to gain a deeper sense of well-being and satisfaction in every area of their life. To receive a FREE "Living Your Life On Purpose" email series or to schedule a "Design Your Life" meeting, click on www.transformationjourneys.com or call 404-551-3601. A full biography can be found in the "About Kris" section of her website.
© 2009 Transformation Journeys Inc.
WANT TO USE THIS ARTICLE IN YOUR EZINE OR WEBSITE?
You can, as long as you include this complete blurb with it:
Kris Cavanaugh, of Transformation Journeys, is a certified coach. Kris provides life coaching services for mid to senior-level professionals who are stuck or overwhelmed and want to take back control of their lives. Unlike most life coaches, Kris employs a very business-like, strategic planning approach and structure that empowers them with the ability to quickly move forward through difficult obstacles to achieve their goals and life visions more easily and consistently. Kris' clients experience a higher quality of life by the end of her coaching program, allowing them to gain a deeper sense of well-being and satisfaction in every area of their life. To receive a FREE "Living Your Life On Purpose" email series or to schedule a "Design Your Life" meeting, click on www.transformationjourneys.com or call 404-551-3601. A full biography can be found in the "About Kris" section of her website.
Obstacles cause us to lose momentum as we are trying to achieve our visions and goals. They often make us feel stuck. Sadly, the longer we feel stuck, the more likely we are to give up on whatever it is we were striving towards.
The best thing we can do when facing an obstacle is to consider the obstacle a wonderful opportunity to learn something new about ourselves. Yes, you read that correctly - obstacles are a WONDERFUL way to help us improve our personal development skills. I can attest to that personally.
There have been times in my life that I set out to achieve or obtain something that was very important to me. Inevitably, along the way, I encountered obstacles both big and small. Sometimes the process of overcoming those obstacles helped me improve personality traits that needed to be adjusted, and other times the process uncovered new abilities I didn't even know existed. For me, it's always a neat experience to look back and see how I've changed for the better during a challenging time. My attitude about obstacles is my biggest asset: I don't usually like them, but I always respect their ability to make me a better person over time.
One of the reasons the coaching industry has been so successful over the last decade is because people are genuinely tired of being stuck in whatever circumstance they are in. When that "stuck" feeling gets too overwhelming to ignore, people often invest in a coaching program to help them move forward. I always tell my clients before they start their coaching program that the change process will often be difficult. Below is a section of my contract that I ask my clients to read and sign, just to make sure they are aware of what it will take to successfully achieve the life they want. Note the bold area in the second paragraph which specifically addresses the obstacles they will encounter:
------------------------------------------------------------------------------------------------ "Coaching is a process full of thought provoking questions, leading to deeper insight and direction, and ending with strategic plans to achieve your dreams and goals. This process will be successful if you commit to doing the assigned homework, utilizing the tools and resources provided, and most importantly, working on the action plans established.
You are investing in this coaching program because you desire changes in your personal or professional life. It is important to remember the change process may bring periods of intense joy or intense discomfort. As you are experiencing the forward movement of change, celebrate whichever period you are in - because it means you are getting much closer to where you desire to be in your personal or professional life.
Finally, as your coach I will ensure your success by committing to providing a safe environment in which you can be yourself, and experiment, fantasize, and strategize about your life and choices without limitation. I will challenge you to step outside your comfort zones to tap into your potential. I will speak the truth as I see it, even if you may not like what you hear (because my job is to ensure that you stay on track with the vision for your life). I will also keep our conversations confidential so that you are free to express yourself however you are feeling in the moment."
------------------------------------------------------------------------------------------------- The bigger your dreams, the more obstacles you will inevitably face. How you handle them is the often the key factor towards your road to success. So the next time you are facing an obstacle, take a deep breath and focus on what you can learn instead of the "pain" you are currently feeling.
In Part 2 of this series (titled “Obstacles to Success – Part 2”), we will discuss the two kinds of obstacles people often face: internal and external.
Identifying & Tackling Obstacles Exercise
Think about a current obstacle you are facing: a circumstance you are tolerating, a difficult conflict you are struggling with, or a change you don’t want to make, but know you need to.
~What is stopping you?
~What makes this hard to get done?
~What one resource or tool would make all the difference if you had it?
~What’s the worse-case scenario if you did decide to tackle this issue once and for all?
Spend time thinking about the answers to those questions, and let me know if I can help you in any way.
Have a wonderful day, and remember to keep your eyes open for all the exciting possibilities within and around you!
Kris Cavanaugh, of Transformation Journeys, is a certified coach. Kris provides life coaching services for mid to senior-level professionals who are stuck or overwhelmed and want to take back control of their lives. Unlike most life coaches, Kris employs a very business-like, strategic planning approach and structure that empowers them with the ability to quickly move forward through difficult obstacles to achieve their goals and life visions more easily and consistently. Kris' clients experience a higher quality of life by the end of her coaching program, allowing them to gain a deeper sense of well-being and satisfaction in every area of their life. To receive a FREE "Living Your Life On Purpose" email series or to schedule a "Design Your Life" meeting, click on www.transformationjourneys.com or call 404-551-3601. A full biography can be found in the "About Kris" section of her website.
© 2009 Transformation Journeys Inc.
WANT TO USE THIS ARTICLE IN YOUR EZINE OR WEBSITE?
You can, as long as you include this complete blurb with it:
Kris Cavanaugh, of Transformation Journeys, is a certified coach. Kris provides life coaching services for mid to senior-level professionals who are stuck or overwhelmed and want to take back control of their lives. Unlike most life coaches, Kris employs a very business-like, strategic planning approach and structure that empowers them with the ability to quickly move forward through difficult obstacles to achieve their goals and life visions more easily and consistently. Kris' clients experience a higher quality of life by the end of her coaching program, allowing them to gain a deeper sense of well-being and satisfaction in every area of their life. To receive a FREE "Living Your Life On Purpose" email series or to schedule a "Design Your Life" meeting, click on www.transformationjourneys.com or call 404-551-3601. A full biography can be found in the "About Kris" section of her website.
Attitude is a little thing that makes a big difference
In my opinion, "Success" is two parts attitude, one part skill. Accomplishing a skill is fairly easy: you find out how to do something, and then practice until you have it down. Maintaining a positive attitude in the face of difficulty, however, is much more difficult.
Most people start out with a positive attitude when striving to accomplish a goal. But somewhere along the way, when obstacles appear and forward movement slows to a crawl, a person's attitude will make all the difference between success and failure.
Not only does a positive attitude directly affect one's success, research has also proven that people live longer and are happier through regular positive thinking. An article on the Mayo Clinic's website states: "Researchers continue to explore the effects of positive thinking and optimism on health. Health benefits that positive thinking may provide include:
• Decreased negative stress
• Greater resistance to catching the common cold
• A sense of well-being and improved health
• Reduced risk of coronary artery disease
• Easier breathing if you have certain lung diseases, such as emphysema
• Improved coping ability for women with high-risk pregnancies
• Better coping skills during hardships
It's unclear why people who engage in positive thinking experience these health benefits. But one theory is that having a positive outlook enables you to cope better with stressful situations, which reduces the harmful health effects of stress on your body." (Mayo Clinic website: http://www.mayoclinic.com/health/positive-thinking/SR00009).
Take some time today to do an attitude check. Think about your life over the past three months. How often was your attitude positive? Were you able to maintain that positive attitude even in the face of difficulty? How did your attitude affect everyone around you? What affects has your attitude had on your physical health?
The answers to those questions are important. Spend a few moments really being honest with yourself. Once you are clear in how your attitude has been affecting your goals, the people around you, and your mental and physical health, make a commitment to implement a plan to improve your attitude however you need to this year in order develop a foundation for success in 2009.
Have a wonderful day, and remember to keep your eyes open for all the exciting possibilities within and around you!
Kris Cavanaugh, of Transformation Journeys, is a certified coach. Kris provides life coaching services for mid to senior-level professionals who are stuck or overwhelmed and want to take back control of their lives. Unlike most life coaches, Kris employs a very business-like, strategic planning approach and structure that empowers them with the ability to quickly move forward through difficult obstacles to achieve their goals and life visions more easily and consistently. Kris' clients experience a higher quality of life by the end of her coaching program, allowing them to gain a deeper sense of well-being and satisfaction in every area of their life. To receive a FREE "Living Your Life On Purpose" email series or to schedule a "Design Your Life" meeting, click on www.transformationjourneys.com or call 404-551-3601. A full biography can be found in the "About Kris" section of her website.
Most people start out with a positive attitude when striving to accomplish a goal. But somewhere along the way, when obstacles appear and forward movement slows to a crawl, a person's attitude will make all the difference between success and failure.
Not only does a positive attitude directly affect one's success, research has also proven that people live longer and are happier through regular positive thinking. An article on the Mayo Clinic's website states: "Researchers continue to explore the effects of positive thinking and optimism on health. Health benefits that positive thinking may provide include:
• Decreased negative stress
• Greater resistance to catching the common cold
• A sense of well-being and improved health
• Reduced risk of coronary artery disease
• Easier breathing if you have certain lung diseases, such as emphysema
• Improved coping ability for women with high-risk pregnancies
• Better coping skills during hardships
It's unclear why people who engage in positive thinking experience these health benefits. But one theory is that having a positive outlook enables you to cope better with stressful situations, which reduces the harmful health effects of stress on your body." (Mayo Clinic website: http://www.mayoclinic.com/health/positive-thinking/SR00009).
Take some time today to do an attitude check. Think about your life over the past three months. How often was your attitude positive? Were you able to maintain that positive attitude even in the face of difficulty? How did your attitude affect everyone around you? What affects has your attitude had on your physical health?
The answers to those questions are important. Spend a few moments really being honest with yourself. Once you are clear in how your attitude has been affecting your goals, the people around you, and your mental and physical health, make a commitment to implement a plan to improve your attitude however you need to this year in order develop a foundation for success in 2009.
Have a wonderful day, and remember to keep your eyes open for all the exciting possibilities within and around you!
Kris Cavanaugh, of Transformation Journeys, is a certified coach. Kris provides life coaching services for mid to senior-level professionals who are stuck or overwhelmed and want to take back control of their lives. Unlike most life coaches, Kris employs a very business-like, strategic planning approach and structure that empowers them with the ability to quickly move forward through difficult obstacles to achieve their goals and life visions more easily and consistently. Kris' clients experience a higher quality of life by the end of her coaching program, allowing them to gain a deeper sense of well-being and satisfaction in every area of their life. To receive a FREE "Living Your Life On Purpose" email series or to schedule a "Design Your Life" meeting, click on www.transformationjourneys.com or call 404-551-3601. A full biography can be found in the "About Kris" section of her website.
Resolutions for Business Success in 2009
Here are 5 rules that I have learned really do help business improve as simple as they may see.
1. Return phone calls and emails: Customers can be impatient. Failure to respond right away is akin to passing business on to the next person.
2. Don't take on more than you can handle. It is better to pass on business to a qualified professional than get a reputation of doing a bad job.
3. Maintain separate finances. Don't mix business and personal money. More money gets sucked into personal expenses than you would expect and wind up causing you business issues.
4. No surpises. Give your customer what they ask for and resist the tempation to give them more. What you perceive as extras, especially in creative services may end up dissatisfying the customer.
5. Diversify. In tight economic times, it might serve you well to move away from your niche business and diversify in order to stay in business. This does not mean that you should sell makeup if your business is writing. It does mean however that you may want to add proof reading and editing to your list of services. If you sell makeup, you may want to add special occasion makeovers to your services (such as weddings and prom).
1. Return phone calls and emails: Customers can be impatient. Failure to respond right away is akin to passing business on to the next person.
2. Don't take on more than you can handle. It is better to pass on business to a qualified professional than get a reputation of doing a bad job.
3. Maintain separate finances. Don't mix business and personal money. More money gets sucked into personal expenses than you would expect and wind up causing you business issues.
4. No surpises. Give your customer what they ask for and resist the tempation to give them more. What you perceive as extras, especially in creative services may end up dissatisfying the customer.
5. Diversify. In tight economic times, it might serve you well to move away from your niche business and diversify in order to stay in business. This does not mean that you should sell makeup if your business is writing. It does mean however that you may want to add proof reading and editing to your list of services. If you sell makeup, you may want to add special occasion makeovers to your services (such as weddings and prom).
In Memory of Carmen Gaddy
Carmen Gaddy, owner of Contours Gym in Snellville and a member of Women of Gwinnett, fought bravely against cancer but passed from this world in her sleep on Saturday, November 29, 2008.
We made a group donation to the American Cancer Society in Carmen's memory in December, 2008 in the amount of $30. Thank you to those who donated.
If you would like to make an individual donation to the American Cancer Society, just visit www.Cancer.org. Donations directly to Cancer.org are tax-deductible.
We made a group donation to the American Cancer Society in Carmen's memory in December, 2008 in the amount of $30. Thank you to those who donated.
If you would like to make an individual donation to the American Cancer Society, just visit www.Cancer.org. Donations directly to Cancer.org are tax-deductible.
How to Successfully Navigate Your Business through an Economic Downturn by: Terry H Hill
An economic downturn is a phase of the business cycle in which the economy as a whole is in decline.This phase basically marks the end of the period of growth in the business cycle. Economic downturns are characterized by decreased levels of consumer purchases (especially of durable goods) and, subsequently, reduced levels of production by businesses.
While economic downturns are admittedly difficult, and are formidable obstacles to small businesses that are trying to survive and grow, an economic downturn can open up opportunities. A well-managed company can realize the opportunity to gain market share by taking customers away from their competitors. Resourceful entrepreneurs capture the available opportunities, from an economic downturn, by developing alternate methods of doing business that were never implemented during a prior growth period.
The challenge of successfully navigating your business through an economic downturn lies in the realignment of your business with current economic realities. Specifically, you, as the business owner, need to renew a focus on your core clients/customers, reduce your operating expenses, conserve cash, and manage more proactively, rather than reactively, is paramount.
Here are best practices that will help you to successfully navigate your business through an economic downturn:
Goals: The primary goal of any business owner is to survive the current economic downturn and to develop a leaner, more cost-effective and more efficient operation. The secondary goal is to grow the business even during this current economic downturn.
Objectives:
• Conserve cash.
• Protect assets.
• Reduce costs.
• Improve efficiencies.
• Grow customer base.
Required Action:
• Do not panic… History shows that economic downturns do not last forever. Remain calm and act in a rational manner as you refocus your attention on resizing your company to the current economic conditions.
• Focus on what YOU can control… Don’t let the media's rhetoric concerning recessions and economic slowdown deter you from achieving business success. It´s a trap! Why? Because the condition of the economy is beyond your control. Surviving economic downturns requires a focus on what you can control, i.e. your relevant business activities.
• Communicate, communicate, and communicate! Beware of the pitfall of trying to do too much on your own. It is a difficult task indeed to survive and to grow your business solely with your own efforts. Solicit ideas and seek the help of other people (your employees, suppliers, lenders, customers, and advisors). Communicate honestly and consistently. Effective two-way communication is the key.
• Negotiate, negotiate, and negotiate! The value of a strong negotiation skill set cannot be overstated. Negotiating better deals and contracts is an absolute must for realigning and resizing your company to the current economic conditions. The key to success is not only knowing how to develop a win-win approach in negotiations with all parties, but also keeping in mind the fact that you want a favorable outcome for yourself too.
Recommended Best Practice Activities:
The Nuts and Bolts… The following list of recommended best practice activities is critical for your business' survival and for its growth during an economic downturn. The actual financial health of your particular business, at the outset of the economic downturn, will dictate the priority and urgency of the implementation of the following best practice activities.
1. Diligently monitor your cash flow: Forecast your cash flow monthly to ensure that expenses and planned expenditures are in line with accounts receivable. Include cash flow statements into your monthly financial reporting. Project cash requirements three-to- six months in advance. The key is to know how to monitor, protect, control, and put cash to work.
2. Carefully convert your inventories: Convert excess, obsolete, and slow-moving inventory items into cash. Consider returning excess and slow-moving items back to the suppliers. Close-out or inventory reduction sales work well to resize your inventory. Also, consider narrowing your product offerings. Well-timed order placement helps to reduce excess inventory levels and occasional material shortages. The key is to reduce the amount of your inventory without losing sales.
3. Timely collection of your accounts receivable: This asset should be converted to cash as quickly as possible. Offer prompt payment discounts to encourage timely payments. Make changes in the terms of sale for slow paying customers (i.e. changing net 30 day terms to COD). Invoicing is an important part of your cash flow management. The first rule of invoicing is to do it as soon as possible after products are shipped and/or after services are delivered. Place an emphasis on reducing billing errors. Most customers delay payments because an invoice had errors, and therefore, will not pay until they receive a corrected copy. Email or fax your invoices to save on mailing time. Post the payments that you have received and make deposits more frequently. The key is to develop an efficient collection system that generates timely payments and one that gives you advance warning of problems.
4. Re-focus your attention on your existing clients/customers: Make customer satisfaction your priority. A regular review of your customers' buying history and frequency of purchases can reveal some interesting facts about your customers' buying habits. Consider signing long-term contracts with your core clients/customers which will add to your security. Offer a discount for upfront cash payments. The key is to do what it takes to keep your current customers loyal.
5. Re-negotiate with your suppliers, lenders, and landlord:
i) Suppliers: Always keep your negotiations on the level of need, saying that your company has reviewed its cost structure and has determined that it needs to lower supplier costs. . Tell the supplier that you value the relationship you have developed, but that you need to receive a cost reduction immediately. Ask your supplier for a lower material price, a longer payment cycle, and the elimination of finance charges. Also, see if you can buy material from them on a consignment basis. In return for their price concessions, be willing to agree to a long-term contract. Explore the idea of bartering as a form of payment.
ii) Lenders: Everything in business finance is negotiable and your relationship with a bank is no exception. The first step to successful renegotiations is to convince your lenders that you can ultimately pay off the renegotiated loan. You must point out to your lenders why it would be in their best interest to agree to a new arrangement. Showing them your business plan and your action plan that includes your cost-savings initiatives, along with "the how" and "the when" of the implementation of your plan is the best way to achieve this goal. Explain to them that you will need their cooperation to insure that you can survive, as well as, grow your business during the economic downturn. Negotiated items include: the rate of interest, the required security to cover the loan, and the beginning date for repayment. A beginning date for repayment could be immediate, within several months or as long as a year. The key is to realize that your lender will work with you, but that frequent and continual communications with them is critical.
iii) Landlord: Meet with your landlord. Explain your need to have them extend the term of your lease at a reduced cost. Make sure you have a clause in the lease agreement that entitles you to have the right to sublet any or all of the leased space.
6. Re-evaluate your staffing requirements: This is a very critical area. Salaries/wages are a major expense of doing business. Therefore, any reduction in the hours worked through work schedule changes, short-term layoffs or permanent layoffs has an immediate cost saving benefit. Most companies ramped up hiring new employees in the good times, only to find that they are currently overstaffed due to slow sales during the economic downturn. In terms of down-sizing your staff, be very careful not to reduce your staff to a level that forces you to skimp on customer service and quality. Consider the use of part-timers or the current trend of outsourcing certain functions to independent contractors.
7. Shop for better insurances rates: Get quotations from other insurance agents for comparable coverage to determine whether or not your present insurance carrier is competitive. Also, consider revising your coverage to reduce premium costs. The key is to have the right balance-to be adequately insured, but not under or over insured.
8. Re-evaluate your advertising: Contrary to the other cost-cutting initiatives, evaluate the possibility of increasing your advertising expenditures. This tactic realizes the advantage of the reduced "noise" and congestion (fewer advertisers) in the marketplace. The downturn period a great opportunity to increase brand awareness and create additional demand for your product/service offerings.
9. Seek the help of outside advisors: The use of an advisory board comprised of your CPA, attorney, and business consultant offers you objectivity and provides you with professional advice and guidance. Their collective experience in working with similar situations in past economic downturns is invaluable.
10. Review your other expenses: Target an across-the-board cost-cutting initiative of 10-15%. Attempt to eliminate unnecessary expenses. Tightening your belt in order to weather the downturn makes practical, financial sense.
Proactively managing your business through an economic downturn is an enormous challenge and is critical for your survival. However, through well-planned initiatives, an economic downturn can create tremendous opportunity for your company to gain greater market share. In order to take advantage of this growth opportunity, you must act quickly to implement the above best business practices to continue realigning and resizing your company to the current economic conditions.
Copyright © 2008 Terry H. Hill You may reprint this article free of charge in your newsletter, magazine, or on your website, provided that the article is unedited, and that the copyright, author's bio, and contact information below appears with each article. Articles appearing on the web must provide a hyperlink to the author's web site, http://www.legacyai.com Terry H. Hill is the founder and managing partner of Legacy Associates, Inc, a business consulting and advisory services firm. A veteran chief executive, Terry works directly with business owners of privately held companies on the issues and challenges that they face in each stage of their business life cycle. To find out how he can help you take your business to the next level, visit his site at http://www.legacyai.com To download a copy of this article, click on this link: http://www.legacyai.com/Article_Downturn.html.
About The Author
An author, speaker, and consultant, Terry H. Hill is the founder and managing partner of Legacy Associates, Inc., a business consulting and advisory services firm based in Sarasota, Florida. A veteran chief executive, Terry works directly with business owners of privately held companies on the issues and challenges that they face in each stage of their business life cycle. Terry is the author of the business desk-reference book, How to Jump Start Your Business. He hosts the Business Insights from Legacy Blog at http://blog.legacyai.com and writes a bi-monthly eNewsletter, "Business Insights from Legacy eZine." By signing up for Business Insights from Legacy eZine at http://tinyurl.com/2t4fxs you can keep abreast of the latest tips, tactics, and best business practices. You will, also, receive the free eBook, Jump Start Your Knowledge of Business. Contact Terry by email at http://www.legacyai.com or telephone him at 941-556-1299.
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