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 High Growth 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.

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