Economic Crisis

It is true that Australia may be one of the best placed countries to weather the economic storm that has engulfed the world.

These are interesting times and that means you need interesting solutions to ensure you can confidently tackle any problems you may face.

Flexible businesses will not only survive this crisis they will evolve and grow while those that remain in the old hold mode will suffer terribly.

It is said that 5% of businesses plan and of these 95% are successful and of the 95% who do not plan 5% are lucky.

Which group do you want to be part of?

Managers and owners need to be very proactive in the current economic climate and ensure that your businesses can survive through good management and perhaps a more sober set of expectations about your lifestyles and spending.   History shows the good times will return and if you want to be around to enjoy them you have to take action to sure up your business now.

Are you convinced the politicians, economists or financiers have any real idea how the economic downturn and recovery will play out. This is new territory for us all and the old ways of thinking do not seem to be working at a macro economic level.   Note that every couple of weeks we receive more discouraging and significantly negative information over which the boffins can't agree.

Those business people with a flexible and positive mindsrt stand a far better chance of succeeding and growing in these turbulent times than those with a fixed mindset and pessimistic narrow minded view.   Open your mind to possibility and opportunity.

Here are some critical questions that you must be able to positively answer in these interesting times.

Do you have a working business plan?

Do you have a full set of budgets and cash flow projections which are monitored and variances identified?

Do you have a strategy to minimise damage in the worst case scenario?

Do you know the difference between a direct and indirect costs and how they affect your profitability?

Do you know what working capital is and what your working capital ratio is?

Do you receive management financial reports and review your business performance within two weeks of each month end?

Do you have a cost cutting mentality and culture in your business that ensures you only cut unnecessary and non productive spending?

Do you plan to maintain your current level of spending or spend more to protect and build you market share in the next year?

Do you understand what contribution margin is and how it has a major impact on your profitability?

Do you have sufficient cash reserves to maintain the business for a significant period of time, perhaps a year?

Why should people buy from you and not the nearest competitor?

What is your sustainable competitive advantage, sometimes known as your unique selling position?

In the knowledge that market and economic conditions have changed significantly in the last 6 months I wonder if you have done a SWOT analysis in the last 3 months?

If you answered "no" to any of these questions you should talk to ProfiTrain.  There are many more questions that could be asked and the answers to them become more likely to be "no" than these.

It is said that 5% of businesses plan and of these 95% are successful and of the 95% who do not plan 5% are lucky.

Which group do you want to be part of? 

Contact Chris at ProfiTrain for a FREE and obligation free 17 minute discussion about crisis proofing your business.   This 17 minute investment could be worth your house and those of your employees.

This offer is limited to the first 15 businesses to contact ProfiTrain.

keep the cogs turning