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.

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Have a blessed day.  Amen.

Bode Ososami

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

 
In the previous post , I presented a model for building high growth business even in a recession and how to begin to position for recovery.  I will now focus on the first stage –  REFRESH VISION and begin to paint a picture of what the new business landscape may look like.  These may appear as daunting challenges but they will inform perhaps some of the areas where innovation can target to yield the highest growth. The winners of tomorrow see these as the spots of opportunities that will drive their future growth.

Future Business Landscape – The New World

• Unemployment remains high being a lagging indicator even as new specialised skills are scarce and in demand.
• The more discerning, sophisticated, frugal consumer will have more options and power.
• Costs and risks associated with financing, debt/cash management will need more proactive management in an unpredictable monetary landscape.
• Shift of Growth from West (US/Europe) to the East (China) and new growth niches.
• More Federal/State involvement, control and regulations drive up costs
• Rising fuel costs, erratic weather patterns, rural/urban migration and the conversion of land to grow crops for bio fuels are all factors that continue to cause high food prices and shortages.
• Rising local/global insecurity driven by social/ethnic tensions.

Where are some of the opportunities for high growth business? I suggest these will include the following initial list only for discussion purposes to inform your envisioning.   There are of course more areas where innovation can target new needs and values. These areas are most likely to be more rewarded with high business growth because they are linked to the emerging landscape. 

High Growth Potential Opportunities/niches

1. Food and Agriculture sectors – the entire food chain offers high growth opportunities
2. Computer/Information Technology industry and related areas
3. Employment bureau/Human capital engineering
4. Security Intelligence and corporate safety
5. Low/medium end affordable residential real estate
6. Niche Health and Medical services
7. Outsourcing services
8. Equipment Rentals/Leasing services
9. Education services/Re-skilling businesses/Knowledge sharing
10. Customer Market analysis /Data consulting service
11. E-business leveraging new channels i.e. webs/blogs/social media
12. Government Consulting/regulatory support/Public sector support services

Areas perhaps to be most cautious in a recession could be high-end real estate, entertainment, luxury industry e.g. jewellery, watch industry etc, high end retailing (designer clothing, gadgets etc.) high end automobiles, Interior decor etc. A new thrifty lifestyle is likely to emerge post-recession.  The successful high growth business is well focused around a core area and may innovate into high growth sectors where there is already a linkage or some synergy exists to diversify. As you develop your long term vision and goals, do reflect the new realities. The next post will examine the meaning of Business Focus.  For the full article on How to Recession-proof your Business 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

I Kings 18: [43]  And said to his servant, Go up now, look toward the sea. And he went up, and looked, and said, There is nothing. And he said, Go again seven times. [44]  And it came to pass at the seventh time, that he said, Behold, there ariseth a little cloud out of the sea, like a man’s hand. And he said, Go up, say unto Ahab, Prepare thy chariot , and get thee down, that the rain stop thee not.

ICorinthians 9 [26]  I therefore so run, not as uncertainly; so fight I, not as one that beateth the air:

These scriptures help to transition to perhaps more down to earth concerns on how we can grow in a Recession from a business perspective and be positioned to be amongst the new winners.  I had devoted more attention in previous posts and my book WEALTH OUT OF ASHES, to the spiritual issues, because it is indeed the spiritual that drives everything else lest we gather our gains in a basket with holes.  This article is the first of seven posts focused primarily on important concepts that businesses growing in times of Recession have mastered.

Immediately, the recession was prophetically announced as over, Elijah commands the servant to go and see and look again even as He prayed.  Refreshing our vision is therefore the first activity because things are not as they used to be and there indeed may be some even permanent changes in the business landscape.  After refreshing our vision, we must execute actions, but not in  haphazard directions.  We need Strategy and Innovation to propel and constrain our actions to produce growth.  Growing businesses also adapt their functional systems to new realities. Let us examine each of these areas as depicted in the diagram summarised as follows:

Refreshing our vision implies the need to pause and relook several times to see the new emerging world and understand new areas of need and business opportunities to target innovation.  We need to refocus our efforts on our core business and rebuild long-term orientation with a new mission and objectives as well as set and share new long/ medium range goals and milestones.

Habakkuk 2[2]  And the LORD answered me, and said, Write the vision, and make it plain upon tables, that he may run that readeth it. [3]  For the vision is yet for an appointed time, but at the end it shall speak, and not lie: though it tarry, wait for it; because it will surely come, it will not tarry.

Strategy and Innovation is achieved by comprehensively reassessing what has changed in our market, customers, suppliers, inputs, competitors, regulation and consider where we now have new advantages or can innovate to build advantage.  Businesses grow when they master their market and competitive advantage and reposition to exploit these advantages to the fullest. High growth businesses also use flexible structures (instead of old hierarchies) to respond to a more dynamic business environment.

We need new approaches and disciplines.  High growth businesses adapt their systems especially in the areas of how they manage people, and account and manage money.  Businesses that grow despite the Recession invest in more marketing to remain visible when others are cutting down – as this conveys strength.  They use technology more boldly to drive innovation and maintain their competitive edge.  The next post will begin to provide more details.   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 .

Bode Ososami