Do you have a Business, or a not so well paid Job?   

I write to you from Queenstown, New Zealand, where the family and I have just spent four days snow skiing. As I sit back sore and tired I refelect how can I relate this to my business. 

I then reveiwed my personal plan, six months ago I engaged a personal trainer to strenghten my legs, arms and every thing else, and my goal was to Ski hard in NZ.

I suddenly relised that my short goal was just achieved, and I felt good about that.

BUT…like all good entrepenuers after setting a goal and working hard to achieve it, once it was over I must admit I needed some recovery time, and boy did my body need it!!!

Australia has just gone through an economic boom, and now its time to put your business through what I call, "A RECOVERY REVIEW".

This means, we need to stop!!..Take a break and see where your business has been and start to get ready for the next business cycle.

No,  I’m not talking recessions, but look around you, high interest rates, increasing inflation, petrol and living costs are increasing and labour shortages threaten. It sounds like we really need to be on top of our game within our business.

ibalance covers 7 steps for your business recovery.

 SEVEN STEPS TO RECOVERY

• Promote special sales or special events to lift sales during the quieter times.
• Use quieter times effectively – make new displays; brainstorm new promotional plans.
• Look at companion selling. Either create a package of several items or make enquires to see if a customer needs another, related product.
• Create clubs or groups of customers and target special promotions for the groups.
• Aim promotions at keeping customers coming back.
• Use other sales techniques (e.g. phone sales or direct mail) to supplement your primary sales efforts.
• Measure the results of each promotion - ask people to ‘bring this ad with you’ or ‘respond on this order form’ so you know which promotions are most effective.

• Roster staff so that more people are available at the busier times.
• Use a mix of core, full-time staff and supplemented with part-timers and/or casuals
• Make stock easy to locate, so that customers can find much of it themselves, and your staff become advisers rather than ‘gophers’.
• Give customers an incentive to give you a larger orders, rather than lots of smaller ones.
• Use quiet times effectively by restocking, organising and cleaning.
• Streamline your processes - make sales processing easy; have docket books, cash registers and EFTPOS terminals conveniently located and available to minimise waiting.

• Target reducing shoplifting of minor items with: vigilant staff; well-located cash registers and use of mirrors, all to provide good supervision of all areas.
• Target eliminating staff pilferage through suitable penalties and training.
• Minimise damage to stock while it is in storage or on display by placing it in suitable locations and use display units to protect it.
• Ensure that all stock received is checked against delivery dockets or invoices, so that you only pay for what is actually received in good order and condition.
• Ensure damaged stock is returned to supplier for replacement or credit.

• Don’t assume that more expenditure on advertising means more results. Some low-cost ads or promotions can be very effective in generating new or repeat sales.
• Drop the campaigns or concepts that you have tried, monitored and they did not work. Try a different approach.
• Ask your existing client if they have ‘referrers’ that they regularly deal with who are in a position to influence customers’ behaviour. An example of this would be a Real Estate Agent who would regularly deals with Landscape Gardeners, Removalists and Cleaners.
• Review how intensively you farm your current customer base - special deals, preview nights for new products, follow-up targeted offers.
• Can you add a new but related product to the current range? This creates scope to re-contact current customers or clients to advertise the new product. This type of re-contact with current customers is much cheaper than to chasing new customers.

• Establish your payment terms as part of the establishment of any new debtor account. Advise all account customers periodically about your debtor policy.
• Offer a range of payment options, including electronic payment and credit cards, as well as account facilities
• Carefully review each request for credit - get trade references as a minimum
• Work out how best to handle large accounts or those where ’special arrangements’ have been made. Should these get the same treatment as all other accounts? Or should they be treated differently? Can you wind back some of the special arrangements?
• Prepare statements on time and mail them promptly
• Prepare an aged list of unpaid debtors monthly (at least)
• Consistently phone or visit slow payers - give one of your people the time, authority and autonomy to contact customers with unpaid balances, and make collection arrangements. The key issue is to contact slow payers regularly!

• Provide information conveniently to your accountant.
• Have your accountant set up systems to accurately record transactions, either in books or on computer.
• Check major decisions in advance with your accountant, rather than presenting him/her with ‘problems’ or ‘crises’.
• Negotiate a flat fee for an agreed list of work to be done.
• Use the accountant as an adviser to help develop the business and your overall net wealth.
• Sit down with a good insurance broker to assess exactly which types of cover you need. The insurance broker should recommend a list of packages considered to be a minimum cover.
• Get the insurance broker to check policy conditions (the most important part of the equation) and then the premium, in order to get a good value policy.

• Prepare your cash flow.
• Measure your actual figures to your cash flow.
• Review up to date financials monthly.
• Obtain additional finance if necessary.
• Talk to ibalance for assistance.