The tide is turning…
There is no doubt that there has been a shift in the market over the last 10 months. More businesses are experiencing more enquiries and order books are looking healthier than they’ve been for the last few years.
Whilst this is great news for all of us, it also creates a new set of challenges that need consideration. Don’t fall into the trap of being too busy getting the orders out to proactively manage and guide the growth of your business.
Some of the key areas for you to consider:
- Operational capacity
Understand your operating capacity and your current utilisation.
Do you have the tools in place to ensure you are not over promising? How will you maintain or improve margins as you get busier? What is your strategy to increase capacity in a way that balances margin stability and market potential?
- Cash flow
Growth sucks cash, so ensure you have the proper controls in place to manage and optimise your cash position.
Do you have good cash flow right now? Are you clear on what cash requirements the business will have if you achieve or even exceed your sales projections?
This area is often not given the proactive consideration it needs forcing owners into poor short term recruitment decisions that have long term consequences.
Do you have the right people in the right seats on the bus? (click here if you don’t know what I’m talking about).
Where and when are you likely to have recruitment needs and are the team as efficient, focused and reliable as they could be?
This is your compass and filter.
What is your long term plan and how are you using this plan to guide and prioritise critical decisions and activities in your business? The tide is turning and it’s your job to be the lifeguard in the tower keeping an eye on the ever changing horizon.
‘Only when the tide goes out do you discover who’s been swimming naked’ Warren Buffett
Don’t get caught out swimming naked!