As our economy heads towards a recession, now is the perfect time to conduct a business ‘health check’ so that you come out the other side improved and ready to go.
Analyse your relationships with your business stakeholders so that you can make immediate improvements in preparation for when the economy starts to recover.
Clients and customers
Client and customer loyalty is something all businesses should aim for, but if your clients’ values are misaligned with yours, conflict is inevitable. Hence, now is the time to re-evaluate which clients you want to keep loyal and which ones you can see a cooperative future with.
Re-assessing your target audience and deepening your understanding of the wants and needs of your clients would help improve your marketing and sales strategies. If you have clients who frequently struggle to pay you on time or are rude to your employees, assess whether your attention is worthwhile and if you would like to continue to work with them when the economic situation improves.
Your employees are another stakeholder to check up on during this downtime. Your employees will always be your business’ representatives so make sure they are up to standard and help them improve on their skills.
Teach your employees more about your business goals and strategies and improve the team atmosphere by introducing team recreational activities. Your relationship with your employees now during a global crisis will dictate how they feel about you as a leader and if they can rely on you in the future. Foster respectful, strong and healthy bonds between you and your employees and only good things will come your way.
The key question to ask when reviewing your suppliers is whether or not you are getting what you need from them at a reasonable cost. If you feel that your suppliers are asking too much from you or letting you down with their product quality, take the time now to look for other options. As businesses struggle through current economic conditions, suppliers are becoming competitive and there are more options to consider. Do your research and decide on the suppliers you want to work with for the long-term future.
Managing your finances is always a difficult task but it is now more important than ever. Your budget and profit predictions for this year are likely going rogue so reevaluate your finances and research other
funding options such as commercial rent, interest rates and banking services.
Consider how you can minimise cost while maximising efficiency and productivity, save as much money as you can during these downtimes, and review your investments in detail to determine whether or not they are worthwhile
Business Advisors & Accountants
Your LT business advisor and accountant can help to review last years accounts and plan for this year, review your structure, discuss tax savings and strategies, bench mark your business, review key performance indicators and much more.
Book a business health check today. Call our team on (02) 4926 2300 or email success@LT.com.au