Archive for the ‘Thriving in Recession’ Category

 Powered by Max Banner Ads 

Genesis 26[12]  Then Isaac sowed in that land, and received in the same year an hundredfold: and the LORD blessed him.

II Kings 8[1]  Then spake Elisha unto the woman, whose son he had restored to life, saying, Arise, and go thou and thine household, and sojourn wheresoever thou canst sojourn: for the LORD hath called for a famine; and it shall also come upon the land seven years.

There are special blessings reserved for those who have made themselves special to God.  This confirms once again that God treats us the way we treat Him.  How are you treating God today?  When a seven year famine was coming upon the land, Prophet Elisha saw many people but singled out the Shunammite woman for that piece of information.  Not only that He guided her away to other lands without famine.  If you are close to God, He will guide you away from danger.  One thing we learn is that God has a solution recipe for every famine.  In Kings 17:1-16, after self-inflicted famine, God asked Elijah to leave for the place He had arranged for him to be provided for.  God always has a place of refuge in times of famine.  Sometimes that place may be outside the area affected by famine but at other times it is within the famine-ravished land, as in the case of Isaac in Genesis 26:1-16.

Isaac thought of escaping to Egypt to avoid the famine but God warned him to stay there and sow.  He obeyed and got so great a harvest that he became the envy of the Philistines.  When he had become prosperous and enlarged, Gerar could no longer contain him.  Apart from a secure location, there are things you can do to escape famine.  Quite a lot of people travel out searching for greener pastures.  Many Nigerians in Nigeria are living better lives than some who left these shores hoping to escape the hard times.  Even in your profession, trade or business, if you are precious to God, He will warn you of imminent storms and give you the recipes to apply. Cultivate a working and lasting relationship with the Lord and you will access relevant information that could affect your today or tomorrow.  Remember God is the original haven from famine.

Famines affect people differently.  While the majority may be experiencing its worst times, a minority may be experiencing its best moments. (Pastor E.A. Adeboye)

Culled from “Open Heavens –Daily Devotional   14 February 2010” by  Pastor E.A. Adeboye  who is the General Overseer of the Redeemed Christian Church of God. 

 Sin is sin and merits punishment, whether you acknowledge it or not…Martin Luther

 “If I am afraid to speak the truth, lest I lose affection, or lest the one concerned should say, “You do not understand,” or because I fear to lose my reputation for kindness; if I put my own good name before the other’s highest good, then I know nothing of Calvary love.” ‘IF’ by Amy Carmichael

Bode

 Powered by Max Banner Ads 

Phillipians 4[5]  Let your moderation be known unto all men. The Lord is at hand.

A new lifestyle of moderation is evolving. Recently Yahoo Finance reported in a recent article 17 Ways Consumers are Changing  by Rick Newman…to present a new world of moderation and frugality.  Some have speculated that when things improve the consumer will go back to lavish consumption but consumer watchers believe this new culture will linger longer than many expect. I wrote a blog post The Post–Recession World and High Growth Business opportunities on the new world and ideas for businesses to consider to embrace the new realities in which I suggested “…The more discerning, sophisticated, frugal consumer will have more options and power…”

The word “Success” is also being redefined – writes Rick Newman in his article. Also more than ever before materialism is being shunned and viewed with suspicion. Another recent news caught my attention on how the luxury royal caribbean cruise liner seen at the Haiti port immediately attracted critical remarks…even as we hear another magnitude-6.1 temblor shakes buildings and sends screaming people running into the streets.

No doubt there is also a new interest in spiritual things out of fear and realization that many creeds seem to have failed and previous metrics of performance found unreliable. Also as digitalization consumerises faith – there are new evangelism opportunities but also serious threats…

Like never before it is time to bring the Lord into the equation of our ministry, business and lifestyle. The Lord cannot be a consultant, adviser or just a helper to achieve what we want or endorse our “ improved” ways.  He is King and He wants to reign as He opens new doors to those who seek, honor and fear Him.

I have listed an update of new opportunities…remember you can start small … and it is not about making more money …

Potential Opportunities/niches to consider…

1.   Low cost Food and Agriculture solutions
2.   Employment bureau/Human capital engineering/Re-education services
3.   Security Intelligence and corporate safety
4.   Low end residential real estate solutions
5.   Outsourcing services/Equipment Rentals/Leasing services
6.   Customer Market insight / Data consulting services
7.   E-business Markets leveraging new channels i.e. webs/blogs/social media
8.   Government Consulting/regulatory support/Public sector support services
9.   Recycling of waste / Used goods merchandising
10.   Community facilitation/volunteering management/support
11.   Home/Personal Finance consulting (Debt-free consulting)
12.   Alternative media solutions ( “responsible” audiovisual/radio/web/TV)

 

Isaiah 11[2] And the spirit of the LORD shall rest upon him, the spirit of wisdom and understanding, the spirit of counsel and might, the spirit of knowledge and of the fear of the LORD; [3]  And shall make him of quick understanding in the fear of the LORD: and he shall not judge after the sight of his eyes, neither reprove after the hearing of his ears…

Surrender your life to Jesus and let Him reign in you.
 

Bode

 Powered by Max Banner Ads 

January 1, 2010 – The New Year rolls in like any other day … another day that God has made for us to rejoice and be glad. We thank God for His mercies that we are still here to be of some service to Him who created us for His pleasure.  We especially thank God for the abortion of the attempt to blow up the aircraft bound for Detroit on the day we remember the birth of Christ.  May we witness more of His divine protection this year.

The Recession is said to be progressively receding and while there already are unusual pockets of turnaround – most indicators, like unemployment, tend to be lagging and will take more time to reverse in our favour. We can expect the second half of 2010 to be better than the first. 

While reflecting on the word of God I discovered some unusual scenarios of blessing I thought could encourage someone at the onset of the year – even in the uncertain times.

II Samuel 6:1-9. David was in fear and discouragement over his mistakes and the bitter consequences he was reaping.  He was a great King who loved the Lord and meant well in seeking to bring the Ark (symbolising the presence of the Lord ) into the City of David.  But in doing so, he contrived a creative, modern and no doubt more exciting approach. God was incensed…soon Uzzah, who generously but naively lent a helping hand, was dead and David was confused…not knowing what next to do.

How many bad situations have we brought upon ourselves through well meaning “creative disobedience” … a term that best describes our contemporary and “more correct” and practical interpretations of the word of God in a modern and enlightened era?  Has the Recession not been a consequence of unprecedented consumption and greed coupled with uncontrolled desire for gains fueled by self-serving Bible interpretations? We embraced shortcuts and discarded eternal truths for the poisonous but more easy to digest leaven of mammon.  A fearful David goes back to the scrolls…possibly ridiculed … just as today many mock the clinging or returning to old landmarks that served Paul, Peter and the early saints even up to the 1800s.  But David also needs help – someone reliable somewhere needs to house the Ark – now percieved as a fearful piece of furniture.  HELP WANTED … and no one is applying.

Matthew 5 [5]  Blessed are the meek: for they shall inherit the earth.

Obededom (meaning servant) is a meek Philistine in exile but now so loyal to David that he is circumcised in adult age and conscripted to be a storekeeper, musician, gateman, porter, servant (I Chronicles 15: 16-21 & 24-25) and perhaps any other odd job David wanted done.  Amongst 600 other Gittites that came with David from Gath – a fiercely loyal band of strangers (2 Samuel 15:13-23). It does not take David long to identify the best person to hold the Ark – someone tested who was so meek and would not so No – even at great personal risk – the Ark had already demonstrated sensitivity to Philistines (I Samuel 5). Previous experience with the Ark suggested this could be a dangerous assignment (I Samuel 6 ;19-20) – Indeed 50,070 men of Bethshemesh died just for peeping curiously into the Ark.

I Chronicles 13[13]  So David brought not the ark home to himself to the city of David, but carried it aside into the house of Obededom the Gittite. [14]  And the ark of God remained with the family of Obededom in his house three months. And the LORD blessed the house of Obededom, and all that he had.

But…for the next 3 months, blessings were storming on a meek , willing, obedient and loyal Obededom at the same time when David was afraid, confused, crying to God, seeking answers and consulting elders in enlightened forums to debate truths that were meant to be simply obeyed and not argued.

Occasionally a perplexed and confused David must have enquired if Obededom was still alive…but instead he gathers that unusual blessings are raining on the House of Obededom the Gittite… a Philistine.

David at last repents and corrects his ways and gets priests ( not professionals and performers) to carry the Ark on their shoulders – as God commanded…and with joyful praise out of the house of Obededom.

This year someone will be unusually blessed…even in the early months of 2010. I will humbly advise all to return to ponder over the commanded word of God. These are commandments and not suggestions awaiting informed considerations.  In the year of the King of kings – some well intended approaches may prove suicidal …

Hebrews 12[2]  Looking unto Jesus the author and finisher of our faith; who for the joy that was set before him endured the cross, despising the shame, and is set down at the right hand of the throne of God.

Ecclesiastes 5:[10]  He that loveth silver shall not be satisfied with silver; nor he that loveth abundance with increase: this is also vanity.

Lord help us this year to worship, obey and serve you as you want to be served and like never before …and may sorrow be far from us and our joy be full.

Amen

 Powered by Max Banner Ads 

We can learn from the example of Isaac on how to respond to some of the challenges and come out even stronger in tough periods.  There  was a famine which was the closest thing to a meltdown in Bible times…a time of agricultural disaster.  What can we learn from Isaac? Read the entire chapter of Genesis 26.  Some excerpts follow:

Genesis 26 [12]  Then Isaac sowed in that land, and received in the same year an hundredfold: and the LORD blessed him. [13]  And the man waxed great, and went forward, and grew until he became very great: [14]  For he had possession of flocks, and possession of herds, and great store of servants: and the Philistines envied him. [15]  For all the wells which his father’s servants had digged in the days of Abraham his father, the Philistines had stopped them, and filled them with earth. [16]  And Abimelech said unto Isaac, Go from us; for thou art much mightier than we. [17]  And Isaac departed thence, and pitched his tent in the valley of Gerar, and dwelt there.

1. Do not go down to Egypt – trust in the Lord of the covenant.  Egypt symbolizes willingness to get wealth by any means, in other words the ways of the world. We are greatlytempted to abandon righteousness and do whatever we think is necessary to survive – a great mistake made by many Christians today.  If we are willing to listen to God, who is acutely aware of our condition, He will direct us just as He directed Isaac to “ dwell where I tell you to dwell” ( verse 3).  God’s admonitions against depending on Egypt echoes through scripture to His chosen people Israel. 

Isaiah 30[1]Woe to the rebellious children, saith the LORD, that take counsel, but not of me; and that cover with a covering, but not of my spirit, that they may add sin to sin: [2]  That walk to go down into Egypt, and have not asked at my mouth; to strengthen themselves in the strength of Pharaoh, and to trust in the shadow of Egypt! [3]  Therefore shall the strength of Pharaoh be your shame, and the trust in the shadow of Egypt your confusion.

2. Do not be afraid to sow in the famine.  This is a tough act of faith that perhaps is the only way to establish to God that you truly believe the rains are in His hands and He is your source and has riches in glory to bless you. Many imagine they have no choice but to consume their seed in famine – but this only guarantees a future destruction.  Others mock the scriptures on sowing as only a deception to rob the already disadvantaged.  But this was Isaac’s main lever in the land of famine … and soon we are told he waxed great. Pray concerning your seed and always look to God for harvest and no man.

3. Do not underestimate God’s ability and grace over you. Isaac, out of fear, resorted to deception (Gen 26 :6-10) because he was afraid that his wife’s beauty would make him a target of the envious.  Trust God and work hard, and do not be fearful of success making you a target.  Base your actions on the fear of God alone and not the fear of man. Beware of being tempted to resort to deception… and if you have done this, go to God and repent. God was merciful to Isaac. Many err in this area. Do not lean on your own understanding.  God can take care of you.

4. Do not strive with men, even if your success makes you a  target for strife as it typically can in times of general difficulty.  This is perhaps one of the most difficult things to learn.  if  you truly trust God, you will know that prosperity is determined by Him. Isaac was forced to move because of His prosperity.  He would dig wells and others will show up to claim the fruit of His hardwork.  Amazingly instead of fighting  them, he simply moved on and started again elsewhere.  Eventually, his enemies could not resist his success and they came to make peace with him because God’s favour on his life was evident to all.  Instead of obsessing about those (real and imagined) who are out to stop your progress, concentrate on serving God and obeying his voice. “For we wrestle not against flesh and blood”.  Learn to release issues and matters and not get locked in strife i.e. by moving on knowing God knows best.  This is not cowardice but often requires greater courage. Do not defend yourself or attempt to prove yourself…this can be a subtle idolatory.  Let God prove you and advertise your innocence – though this often takes a very much longer process.

5. Do not use your success to settle scores.  Isaac could have repaid the people of Gerar in kind for their bad behaviour towards him.  Instead he accepted their peace offer and even hosted them to a feast.  Alas, during hardship, some people you trusted may wrong you or disappoint you.  Do not respond in kind when you are now successful and thriving, even if they do not see or acknowledge their fault.  Paul said “do not be overcome with evil, but overcome evil with good” and “render to no man evil for evil”.

Most of us have not done as well as Isaac.  It is well … still go to God even if like a prodigal son.  Remember, it is not by our power nor is it by might but by His Spirit so let His Holy Spirit have His way.  Walking in your own strength is a sure recipe to fall – eventually…and remember to give all glory to God.

Bode

 Powered by Max Banner Ads 

Pastor E.A. Adeboye declared it at the last Holy Ghost service –  ”The Recession is over!”.  He will be delighted to see all of you, have you hook up by internet  and indeed cordially invites and welcomes you to be part of Holy Ghost Congress 2009 -  Dec 14th -19th.  We thank the Lord for all He has done in your lives, families, work, churches and nations since the last Congress.  We give Him all the glory for His faithfulness, protection, provisions and travelling mercies over the past one year.

The Holy Ghost Congress, marked for six days from the second Monday in December, has brought fresh impetus to the celebration of the best ever gift to mankind – salvation through faith in Christ Jesus. Like the maiden edition in December, 1998 the programme draws large crowds numbering in the millions who gather for worship, scriptural expositions, intercessions and special ministrations.  The 1998 event, then a one day affair held on the sprawling expanse of beach beside the Lagos-Epe Express way in South West Nigeria was reported to have had over four million worshippers making it the single largest gathering of its kind at that time…

Connect via Internet to Congress

The theme of the Congress is  OUR GOD REIGNS!  From seeing earthly kings and presidents, we should have a good idea of what it means to reign. When the King of kings and the Lord of lords Himself reigns, it is a different matter altogether.  The Bible show us some pictures of what happens when the King of Glory reigns.  

Do you want Him to reign in your life? Very well.  All you need to do is to pay attention to Him. Prayerfully and meditatively attend all the morning, afternoon and evening sessions.  As the King of kings, He may choose to intervene in your situation at any time.  Your part is to be ready and available.  Be expectant.  This is going to be an unforgettable Congress.  Just let Him reign in your life and as you come in faith, you will go home testifying.  Praise and worship Him for what He has already done and for what He will do.  I welcome you to be part of the Holy Ghost Congress 2009 in the mighty name of Jesus!

Welcome address by Pastor E.A. Adeboye

Holy Ghost Congress 2009 Programme

Further information on the Congress and the Church may be found at www.rccg.org.

 Powered by Max Banner Ads 

More Disciplines to master.

The businesses that keep growing have had to imbibe new ways of working. Perhaps the most important is their attitude to numbers. Numbers must be well managed i.e. the financial positions are reviewed every fortnight/monthly with up-to-date cash flow statements, income/expenditure analysis and analysis of debtors/creditors etc. You must have a good financials person to support you.  In Part I, I introduced a 3-stage model for growing in Recession.  Adapting your systems for growth (stage 3) involves leveraging the areas discussed in this post effectively.  See diagram below.

Keep an eye on cash flow

Many have learnt to be their own accountants, just by taking an interest in their numbers. Understand how cash comes in and goes out and why. The growing companies project their positions over at least a 6 month – 1 year period and regularly monitor their performance against these projections…even as they update their projections. If your business offers credit, then there must be a working credit control process that manages and guides this activity – strictly.

Banking and investments management must also be professional and based on well set policies that protect your liquidity and flexibility.  Clean up your credit and if possible minimise your lending.  Lending will in future tend to be more expensive as banks upgrade their due diligence. Select your bank only after a well balanced and regularly updated analysis of their balance sheet – watching out for changes in their risk assets and proportion of un-performing assets compared to peers.  These are often openly available information. Attend a course on basic accounting for non-accountants if you really mean to bullet-proof your business and know the vital signs for your business.

Invest in Marketing

Learn how to remain visible to your target market.  You need to raise your brand awareness.  Most people are quiet at this time and so you can gain recognition for much less expenditure.  Use this opportunity to gain the mind of your potential clients.  Also invest in sales training for your team.  Relearn the values, needs and product features of competitors’ offerings.  Explore new channels like the web which enables many to improve their return on marketing investments by cutting off the middleman.  High Growth businesses have a talented sales force that remain motivated trained, up-to-date and equipped to go and sell.

Use Technology – don’t allow technology to use you

Today there is a vast array of technology and software marketed at businesses. Businesses that keep growing invest in Technology with a clearly defined purpose i.e. to:

• Lower costs and increase competitiveness
• Drive innovation that translates to new value
• Improve customer satisfaction
• Enable smooth connections with suppliers, customers, staff and partners
• Provide key management information to facilitate decision making.

Technology does not have to be expensive.  Get help to explore various options and be cost effective.  Do not invest in Technology to impress your market.  No one really cares about your technology.  What matters is what the technology delivers.

Conclusion

Someone said “Recession may after all be the mother of invention…” In the 1930s depression, it was innovation that created the new star businesses despite the crash.  Consumers are not averse to buying – instead they are looking for new answers and not the previous propositions we are set to offer.   Pray that God will reveal these new answers to you.

A global survey recently conducted showed that Entrepreneurs still see much potential in today’s economy and are planning for growth. Most still see growth as their top priority item. Finally, remain positive and excited about the future as you see all the opportunities waiting for the entrepreneur.

But of course remember, the spiritual will always drive the physical…the unseen produces the seen.  Read WEALTH OUT OF ASHES to appreciate some of the spiritual dimensions that are shaping the creation of wealth.

Haggai 2 [8]  The silver is mine, and the gold is mine, saith the LORD of hosts.

Deut 8[17]  And thou say in thine heart, My power and the might of mine hand hath gotten me this wealth. [18]  But thou shalt remember the LORD thy God: for it is he that giveth thee power to get wealth, that he may establish his covenant which he sware unto thy fathers, as it is this day.

When the Recovery comes, this time do not forget the source.  It was never you. Remember God.  The wealth is to establish His Kingdom.

For the full article on How to Recession-proof your Business, please click – DOWNLOAD ARTICLE.

For related articles and free subscription to articles by the author please click icon below.

Have a blessed day.  Amen.

Bode Ososami

 Powered by Max Banner Ads 

Managing your talent for Business Growth.

What do growing businesses do when others are releasing staff in panic?  I had introduced earlier a model for how to grow in the Recession in three major steps. The first step is to Refresh your vision, the next is to have a Strategy and Innovation and the final step is adapting your systems to grow in Recession.  This section begins to look at an important aspect of adapting your systems i.e. how to manage your people.

Invest in yourself

As a leader you will need a lot of re-education and learn new tricks. You are too key in the equation to be ignorant.  Invest therefore in knowledge, skills, seminars, exhibitions and market awareness and explore how others have made it.  If you can afford a good online training course to “sharpen your saw” do so.  Invest in a high quality internet line and spend 1 hr at least a day online equipping yourself (knowledge is amazingly cheap on the web) on the issues relevant to your business.

Find exceptional talent

This is not the time to bring in your cousin looking for a job.  On the labour market will be very exceptional talent available for median compensation pay.  Find out the skill gaps in new areas to be ahead in the innovation required to grow. Indeed there is unemployment, but the people you need (who can make the difference) are rare to find – this is the time to search and find them. For example you will need great financial engineers, digital information experts, market makers…always bring in people who are smarter than you and who can challenge you and not just loyal “fools”.  What you need are ideas and help. Be humble to seek and enjoy help from others. Learn to celebrate and motivate others to help you.

Reengage with your team

The growing business will be reengaging with his people and creating a sense community instead of fear of job loss.  You can demand more loyalty and sacrifice at this time.  The growing businesses classify their people into performance categories and will offer voluntary release to the lowest tier of performers while they reconnect with their stars. Bonding and a sense of shared destiny is important so that all are aligned to help the business survive and grow.

Rewarding your people

The high performing businesses use variable pay mechanisms i.e. a portion of compensation is fixed and others dependent on corporate/personal performance.  To adjust for recession, the best strategy is to reduce the fixed pay across board and increase the variable performance pay.  This way, high performers retain or increase their salary while in a very bad period all will feel the brunt of reduced pay in a way that is perceived as fair. Be sure compensation mechanisms are fair and targets are as quantitative as possible.

When things begin to get really bad

There could be very low periods when releasing staff is inevitable.  Begin by offering voluntary unpaid vacations, flexible work (at home) at say half pay…use the opportunity to tighten your disciplinary systems.  If you must disengage, then do not encourage an extended process.  Do it fast as it could hurt morale. Always remember that as you let a valued staff go – it may be almost impossible to find, recruit and retain such talent when recovery returns.

The final post in the series will look at other functional systems.  For the full article you can click – DOWNLOAD ARTICLE.

More on God’s perspective on wealth can be found in my recently published book  Wealth out of Ashes

For related articles and free subscription to articles by the author please click icon below.

Have a blessed day. Amen.

Bode Ososami

 Powered by Max Banner Ads 

High Growth Businesses have Flexible Business Structures.

Building highly flexible structures is one of the ways businesses can be successful in periods of dramatic downturn as well as being better positioned for recovery.

A few of the ways in which flexible business structures can be built include the following:

1. Outsource non core areas of the business as much as possible
2. Avoid commitments to long term costs/major items exploring other alternatives
3. Use more of rental, lease structures and other more flexible approaches for assets instead of outright purchase.

The key is to have a nimble structure and not weighed down with assets that suddenly become unproductive.  The successful business have learnt to employ more of flexible contractual terms that do not tie them into rigid long-term positions.  This maximises their abilities to move in and out of different cost structures for different markets and positioning.

Outsourcing is becoming a favourite approach, but must be well managed to ensure quality of customer service is not sacrificed for lowering costs and flexibility.  In addition, areas where competitive advantage can be built and of core business expertise are typically not outsourced.  Almost everything else can be outsourced. The outsourcing service provider is able to deliver improved costs and quality of service as a result of a larger scale of operation and economies of scale as well as the fact that the outsourced service is the core business of the provider, thus encouraging more investment in service quality and better value.  Flexibility is also built through flatter, team based organisation structures with wider spans of control made manageable by information systems and much fewer management levels. Employees are compensated more through variable pay structures more by performance and skills rather than by level.

The high growth businesses have learnt how to build structures that allow them to reengineer their cost mix as required at short notice.  Build options rather than fixed positions.  The goal is to aim to make every single possible cost variable.  High growth businesses are not in the real estate business to impress the market.  They do not need to own assets to get the value they need recognising that ownership tends to confer inflexibility and fixed capacity that could be costly in a downturn or when a sudden change in the market requires less capacity.  In the old era, the maxim was to buy, own and show off your building and computers as evidence of strength.  The new world will be more dynamic implying that nimbleness to shift seamlessly and adjust cost structures will be valued more than a showroom display of assets that drain scarce capital.

The next post will examine how growing businesses manage people.  For the full article you can click – DOWNLOAD ARTICLE.

More on God’s perspective on wealth can be found in my recently published book  Wealth out of Ashes

For related articles and free subscription to articles by the author please click icon below.

Have a blessed day.  Amen.

Bode Ososami

 Powered by Max Banner Ads 

Reviewing Market Strategy and Innovation.

Now let us looks at the issues of Strategy and innovation. Businesses that thrive in Recession know how to find new competitive advantage especially from the changing dynamics that scare others away. 

They are not afraid of change instead they embrace it and look again at customers, suppliers, competitors, entry barriers, potential partners and product offerings for fresh opportunities.  They ask the question “what has changed” that can be to my “advantage”. For example a bigger business may have deliberately shed some of its customers…or a collapsed inefficient competitor release some top marketing people able to generate quick leads on the labour market and weaken the supplier’s power who are now burdened with inventories and capacity they did not plan for. Bad news for someone could be an opportunity for the other.

Product prices may need review where customers now have cheaper alternatives.  Supplier base may need to be expanded so you are not over reliant on one supplier.  The same could be the case with your customers. 

A reassessment of competitors could also present an opportunity for an acquisition if there is a synergy gain that is attractive given the costs.  A weakened supplier power due perhaps to unutilised capacity could mean the opportunity to renegotiate lower supplier costs by seeking discounts and better payment terms.

This is the time for a customer and supplier survey no matter how informal.  Use this as an opportunity to reconnect with your customer needs and values which may have changed and to understand how you can maximise your supplier relationships. Remember it is far more costly to cultivate a new customer than hold to an existing customer.  Do not permit customer service levels to drop even if you have to bear higher costs that may be tougher to pass on immediately. These conversations with customers and suppliers will secure business relationships through the crisis periods that hit all businesses.

Innovation

The key to winning when others fail is innovation.  High Growth businesses are structured with the flexibility to innovate successfully. They have inbuilt tolerance of constructive and well managed experimentation and sometimes failure.  Innovation is the driving force that creates value at best price for the customer.  Do not give away value as you innovate i.e. do not be cheap. Do continually trim fat to ensure costs are right but not at the expense of innovation. Be sure you have boundaries around your innovation…you want the few right ones and not every idea.  After all you are a business and not a college laboratory.

The next post will examine Flexibility – another attribute of growing businesses.  For the full article you can click – DOWNLOAD ARTICLE.

More on God’s perspective on wealth can be found in my recently published book  Wealth out of Ashes

For related articles and free subscription to articles by the author please click icon below.



Have a blessed day.  Amen.

Bode Ososami

 Powered by Max Banner Ads 

High Growth Businesses are Focused.

In the parable of the talents, we see the lesson in proving yourself first in an area and mastering that space before seeking expansion.  Focus could mean starting small and building good systems and working culture before seeking an expansion that throws you in all directions.  Most people are deluded to think a large business is necessarily a good business.  A large business, on the contrary, could be a monster without a core area of competency and the necessary support structures to manage the business.

Successful businesses keep an eye on the core area of focus. They are focused in their offerings and customers.  They classify their customers and can target loyalty programs for their top tier customer group.  Focus also means they will exit or turn down attractive deals because of lack of fit. 

Focus can be initially costly and slow to deliver growth but soon special expertise valued by the market is built.  Skills come with experience and research and innovation soon create the edge that the customer will pay for.  Costs can fall dramatically much later as the experience curve delivers new economies that create even more enhanced competitiveness.

What do you do if you find yourself in an area that is no more generating revenue or has lost its attractiveness?  Simple – Exit.  Focus does not mean to keep backing a loser. Rather it encourages persistence over a long enough time to build reputation, brand and special expertise to enable innovation in an attractive sector of the market.  Your focus could be in terms of your product offerings and it could be also driven by your customer segmentation. 

Focus does not always mean high costs but must imply exceptional service and the ability to spoil the discerning customer.  When experience in a customer segment creates economies that can enable you to be more cost effective – be cautious not to give away value that customers are prepared to pay for.  Instead sell value that cannot be easily matched to your target customer tier.  As you gain even more experience and capabilities use innovation to diversify to new attractive niches related to your core business.  Growth is good when deserved by deep competence and past market success and experience but cancerous when driven only by opportunity.

Matthew 25 [28]  Take therefore the talent from him, and give it unto him which hath ten talents. [29]  For unto every one that hath shall be given, and he shall have abundance: but from him that hath not shall be taken away even that which he hath. [30]  And cast ye the unprofitable servant into outer darkness: there shall be weeping and gnashing of teeth.

The next post will discuss Market Strategy and Innovation.  For the full article you can click – DOWNLOAD ARTICLE.

More on God’s perspective on wealth can be found in my recently published book Wealth out of Ashes

For related articles and free subscription to articles by the author please click icon below.

Have a blessed day.  Amen.

Bode Ososami