The current situation is a challenge for all business owners; some more than others. The question is: What can we do to make the best of this crisis and come out stronger in the end?
Step 2: Identify Where Your Business is Creating Value
Once you have ensured that your business is surviving right now (see Step 1), then next step is to look into the short to medium term.
Instead of a Cost review
Many of you are probably reviewing your costs right now. I’d like to ask you to take a slightly different view: Which are the parts of your business which are creating value for you?
Perform a Value Review
Over the past couple of years business have (generally) done quite well. There has been room to carry the extra weight of someone who is not performing or accepting losses in one part of the business.
As we head towards a recession, this will no longer be possible. So instead of reviewing the costs of your business, review the parts of your business which are doing well and those that are doing badly. The parts of your business which are not doing well need to either be put into turnaround or be stopped.
Once you have a clear picture of the parts of your business which are creating value for you, then you can start to review your costs with more focus. If the costs are necessary to support the successful parts of your business, then you will need to keep paying them. Possibly even invest more (if possible).
The costs related to the poorer parts of your business are then clear candidates to be cut.
If you are interested in working together to review your medium business interest, please schedule a FREE first appointment here.
I look forward to hearing from you.