What Do You Do About Uncertainty?
The economic indicators are on a downward spiral. In fact, unless you are an exporter, you’re probably having a tough time to maintain your position, or match last year’s performance. As a business manager it is getting increasingly difficult to forecast revenues and profitability. Uncertainty is the real danger to all markets. If the pound suddenly leapt in value, even exporters would get the jitters.
So how can you respond to that uncertainty. Many brands think that the best thing to do it to ‘wait it out’. They say things like ‘Let’s wait and see what happens, and then hopefully it won’t be as bad as some people are saying and then we’ll be okay again.’
That’s a pretty weak way to run a business. Waiting until when? At what point will you know what’s going to happen? When will you know how bad it is? Or how good it is? And then what?
In fact the only thing you can be stone cold certain of, is uncertainty. Bizarrely many brands thought last year would be much worse than it was, after the Brexit vote. But after a year where actually nothing changed, they were all surprised at how well they did!
So now, this year, we are in the middle of a squeeze. That’s definite. The Brexit deal we are all hopeful about is no nearer now than it was 12 months ago. So are you going to wait another 12 months to see what happens? Every day we live in that world, we miss opportunity. We stop being creative. We stop developing what we offer and how we offer it. We stop investing in our people and we watch our service levels, sales and profitability drop because in the meantime we were ‘waiting to see how things pan out.’
There’s a great saying about ‘you’ll never get this day again, so make the most of it.’
Every day is an opportunity to actually grow, mentally, intellectually and financially. Regardless of the current uncertainty (which is certain) all brands should look at their current opportunities and create ways to maximise them. People buy people, they buy from those they know, like and trust, they buy from those they see growing and being proactive, they buy from those who make them feel better about themselves. These facts never change and if your business is delivering on these then you’ll do great, whatever the economics.
Top 3 Tips for Uncertain Times
1. What’s your conversion rate? What do you need to do to increase the percentage of sales your make against no sales?
2. What’s your profitability percentage? Of all the things you sell, which products or services make you the most? Divert effort into those during any downturn.
3. Are your managers coaching to get the best performance from your people? Are they up to the job of increasing productivity for the same investment?
For more information on how Reality Training can strengthen your business to meet the challenges of today visit www.realitytraining.com