Posted On: 1st November 2012
In today’s uncertain economy, entrepreneurs need to remain innovative and embrace the frequently changing world of business.
Many business owners have inherent instincts when it comes to adapting to chaos and change, but even those without a visceral approach can still thrive by consciously changing their daily thinking and planning to stay one step ahead of the game.
It’s perhaps timely for businesses to consider a debt workout. After all, defaulting and possible foreclosure is a recipe for chaos. Removing debt from a business will allow more flexibility and freedom to make all the necessary changes to grow and develop anew. It is important to diligently track, monitor and control how a business performs and then utilise this data to make appropriate adjustments to enhance profitability. The key indicators to follow include profitability by the job or product, costs, overhead ratio and payroll ratios. Simply track these measurements and then manage by the numbers.
Unremitting reinvention is the right avenue to success as stability and predictability are no longer a reality. Of course, honour the core principles of your business but smartly adjust with the times. This comes from frequently reconsidering and questioning the overall business strategy, experimenting and stepping outside the box. Find a niche, provide spectacular service and pursue those net profits.
In pursuit of success, there are all kinds of routes to consider. For example, why not import instead of manufacture, add services, focus on a niche and consider expansion. Remember, the whole idea is to determine what works and does not on a regular basis and then making the adjustments required to stay profitable.
For those businesses that have not done so already, get marketing on-line. Internet marketing is a big change to consider in reinventing a business. The Internet has already changed the world, so it is time for it to change the business too. There are several options to consider which include beefing-up the website and on-line sales operations, search optimisation, blogging and not forgetting social media. The Internet can help the smallest of businesses compete with the largest international institutions. Perceived value and niche marketing will win with the community support that social networking provides.
Change should not be feared, for history shows us that entrepreneurs have re-invented their businesses for centuries and now businesses must learn to do so again. Change should be championed, so why not make it an integral part of your business planning?
By Gerald Irwin, Irwin Insolvency