Guest Article

EasyReach Management

To Die, or Not To Die - You Choose

In the Crucible

Woolworths and MFI were consigned to the history books as they were put into administration.  Woolworths has 815 stores and 25,000 employees, but a rescue package could see the number of stores drop to 200, with many staff members facing redundancy.
One fact is certain: we are in an economic crucible and the heat is starting to increase. Mr Darling is throwing in all sorts of additives but neither he nor even Alan Greenspan knows if he has the right formula.

Survival of the Fittest

We can be certain that the economy and well-managed businesses can ultimately emerge stronger and tougher as a result of the economic downturn. To get there we will have to endure high-temperature, blood, sweat and tears. Like Woolworths, some businesses are going to die but those that allow themselves to be refined and develop strategies to overcome will emerge leaner and more robust in the future.

Step Back

When times are hard, business owners and directors tend to become more hands-on, and take their focus away from working on their businesses to working in their businesses.  We tend to try and work harder and sell more; we carry the boxes, stack shelves and man the till ourselves in order to lighten the salary bill. In most cases, this desperate knee-jerk reaction is the wrong response.
The first thing we should do is examine our business objectively and look at what is going on in the external environment.  

Decide Where You Are Going - Plan How You Are Going to Get There

The old adage still makes sense: when you know where you going, you more likely to get there. We men have to admit that we prefer to jump in the car and just drive. If we get lost we don't like to ask directions; but we all know - and would never admit to our wives - that if we planned the route and asked for directions we would most likely get to our destination quicker and with a lot less stress. Knowing the obstacles that we have to overcome before we set off, helps plan the best route.

If you have the answers to these ten questions, your business is much more likely to be one of those that survive:

  1. Where am I now in my business?
  2. Where do I want to be in three to five years' time?
  3. What are my business's strengths and weaknesses?
  4. Am I sure that I am supplying what my customers need and want?
  5. What are my competitors doing and charging?
  6. What can I do to get advantage over them?
  7. What opportunities are there in the marketplace (possibly something your competitors are not doing)? How can I take advantage of them?
  8. What are the threats to my business?
  9. What external events, that I have no control over, will/are impacting on my business and what effect will they have?
  10. How am I going to get to where I want to be, or weather the storm (develop strategies)?

Taking assertive positive action will reassure your staff, customers and your bottom line that you intend to survive in your business.

John Kearney
Easy Reach Management Ltd
strategy@easyreachmanagement.co.uk

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