Six Steps to Make Your Business Resilient
As I write this, there are fresh concerns across the world economy over recovery in Europe and North America, Chinese GDP is slowing, and the Australian mining boom seems to be coming to an end.
These are world-wide economic affairs, and as owners of small businesses you might be wondering how this affects you, the small fish in a big pond.
The effect on you trickles down from what happens on a global scale. As countries batten the hatches, the larger companies in your nation’s economy slow down because their customers buy less. These larger companies buy from smaller companies, and these smaller companies buy from you. As the larger companies tighten the belt, employees might lose their jobs. Some of these individuals buy from you. Business might still seem good to you today, but it may take some time for an economic crisis to trickle down.
Nevertheless all is not doom and gloom, there are some signs of opportunity that encourages continued optimism. So what do you do today with these mixed messages?
As a small or micro-business you need to recognise and take advantage of modest opportunities to grow, but at the same time recognise the existence of potential downside risks.
Certainly, pay attention to your bottom line but at the same time, focus on cash flow and not just profit growth. Ensure that you are putting away sufficient working capital to survive any shocks. You need to continue pursuing business opportunities, but with discipline and careful planning. And, this is the time to put in genuine efforts at reorganising your business for efficiency.
As a small or micro business today, realising that you are at the mercy of market forces outside your control, I would look at these 6 steps to build resilience into your business.
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