By Jane Tuttle
Entrepreneur’s Corner
According to the U.S. Bureau of Labor Statistics, the national unemployment rate rose to 8.5 percent in March, representing the devastating loss of a total of 663,000 paying jobs, and it’s moved higher since then.
Clearly, these numbers indicate that doing business in the current economy presents many challenges. What they don’t show, however, is that opportunity does exist for those business owners who take advantage of this crisis to turn their vulnerabilities into assets.
Adversity, although sometimes difficult, often serves as a method of differentiating between the weak and the strong.
Entrepreneurs who are managing to thrive in today’s business economy are those who are capitalizing on the lessons learned from the downturn to improve their business model.
They’re successful because they’re learned to view their businesses realistically and seek opportunities for strategic growth. Here are a few ideas on how to reverse the challenges many companies currently face:
Keep on top of receivables
Cash flow problems are responsible for more than 70 percent of business failures within the first year of operations. Avoid this scenario by hiring a bookkeeper or designating a current member of the staff to be responsible for receivables.
Match positions with personalities
Get the most out of your recruitment efforts by investing in services that ensure you have the best personality match for a designated position. Make it a point to reward current talent in order to increase retention.
Stay visible
Now is not the time to cut back on marketing budgets. Create a tactical business plan that utilizes your resources wisely. This will provide the basic foundation for any business.
Set goals and stick to them
Under-performing sales people bring in — at minimum — 50 percent less revenue than top performers, studies have shown. Set realistic goals for your sales force and use regular checkpoints to steer clear of a lack of productivity.
Communicate your vision
Decision-makers should not keep their objectives from employees. Foster a team atmosphere by sharing your ambitions for the company. Employees are guaranteed to be motivated as a result.
Businesses that struggle to succeed are often plagued by one or more weakness in the following areas: financial management, human capital, planning, sales and sales management, and communications leadership.
Add the harshness of the present economic conditions, and these flaws become even further exposed, greatly diminishing a company’s chances of financial survival.
As a business coach with The Entrepreneur’s Source, I’ve helped many business professionals navigate through financial risks by providing comprehensive, unbiased feedback on topics such as leadership communications, sales management and market planning.
Clients often need help in identifying and building on their strengths, closing gaps, and holding themselves accountable for their own goals they’ve set for themselves.
Entrepreneurs and small businesses in Snohomish County are the lifeline of our local economy, and they’re often the ones most susceptible to the volatile nature of the financial markets.
But, by being proactive and learning from the mistakes of others, they can reasonably turn their operations around and position themselves for future growth.”
Jane Tuttle is a business coach with The Entrepreneur’s Source in Edmonds. She can be reached at 425-608-0708 or 866-569-8043. The Entrepreneur’s Source is North America’s leading career and business coaching company dedicated to entrepreneurs, with more than 220 franchise offices in the United States and Canada. The company’s unique E-Source Coach Advantage offers a full range of services to individuals seeking alternate career options and to franchise businesses looking to increase performance. More information about E-Source, and other FSBI international brands, can be found at www.FranchiseNewsRoom.com.
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