Business Education

3 Effective Ways to Emerge from the Pandemic Even Stronger

With every crisis, there is a conclusion. Each economic downturn eventually transforms into recovery. Sometimes, the two are extreme and stark contrasts. Other times, they are mildly separated, yet perceptible. It’s how businesses act and react that is most important. Unfortunately, too many business owners react in a reflexive, impulsive way. Meaning, they don’t fully think through the situation overall, rather they merely act in the moment. Conversely, business owners that see long-term benefit even when there’s an economic downturn. Those companies come out stronger after the crisis passes.

Seize Opportunities When they Arise

Property investors who buy when the real estate market slides hold their assets until the market recovers and sell for a profit. Similarly, investors buy stocks when they fall amidst economic turmoil.

When the crisis subsides, the temptation will be to turn back that progress and retreat into old behaviors. But entrepreneurs need to shift from overload to shared load, and to practices that can transform team performance to find unexpected growth–and lower unsuspected risk. —Inc.com

These savvy people also sell when the prices begin ticking up again. There’s most definitely a pattern here and a lesson to be learned. That being, it’s possible to turn an otherwise bad situation into a beneficial one with the right moves. These individuals understand that the laws of physics do work in reverse when it comes to economic circumstances. Ironically, what goes down must inevitably go up. These people use that counterintuitive dynamic to their advantage.

3 Effective Strategies for Emerging Out of an Economic Downturn

So, just how do some business owners make the proverbial lemonade out of a bowl of lemons? These entrepreneurs don’t get caught in a negative mindset. In fact, they look at things pragmatically and create strategies that benefit them. Here are three ways to come out of an economic downturn stronger:

Know the numbers. The very first thing you need to do is fully understand precisely where your business stands at this point in time. If you don’t know the numbers, any plans you come up with will only reveal the true matter of the situation and this could be very costly. Take the time to get into the numbers to know exactly what you’re dealing with.

Devise a realistic, workable plan. Next, you’ll need to devise a realistic, strategic, and actionable play-by-play plan. It’s okay to look at the big picture, but be sure to address possible scenarios with contingencies. You don’t have to plan for every possible set of circumstances, but you should definitely have ways to work through the most likely.

Invest heavily in strategic relationships. Another smart strategy is to invest as much as you can in strategic relationships. Good entrepreneurs know this intuitively and leverage these relationships in ways that benefit everyone. Come up with ways that are advantageous to all parties involved and work towards those goals.

What other steps would you suggest to overcome an economic crisis? Please take a moment to share your thoughts and experiences; it could prove very helpful to others!

Interested in learning more about business? Then just visit Waters Business Consulting Group.

Like this article?

Key Reasons Businesses Experience High Employee Turnover

November 18, 2021 No Comments

High employee turnover is practically normal in some industries. These are mostly entry-level positions, where people only stay for a short time. But, since the global pandemic outbreak and shutdowns, followed by the reopenings, more and more companies have experienced unusual amounts of employee turnover. Although it’s easy to simply blame this abnormality as the source of the problem, there are sometimes underlying issues. It’s just that these remarkably unusual sets of circumstances have finally brought those festering problems to the surface. High Employee Turnover Usually Underscores Underlying Issues High employee turnover may in fact highlight problems within the workplace and not be a reflection of the departing team members themselves. Put another way, it’s not the employees’ faults necessarily, but something in the way the business is run. This isn’t to say it’s always the corporation’s fault, as mentioned above, some industries experience high rates of employee turnover regularly. However, if you’re running a business that does not hire nearly exclusive entry-level workers, and people are quitting after short periods of time, there are probably some good reasons. Companies often thrive based on the talent provided by their employees. Yet, if a company is faced with frequent turnovers, the efficiency and effectiveness of business operations could suffer. Similarly, those companies that maintain a consistent workforce may be able to grow as a result of their employee base performing consistently. Understanding the causes and effects of turnover can help your company develop strategies and policies to increase the odds of keeping the staff members you value. —Houston Chronicle Small Business One of the most difficult things for owners and entrepreneurs alike to see and understand is where their businesses are falling short when it comes to their employees. Ensuring that employees are well taken care of is just as important as serving customers to the best of your abilities. Since employees are the very lifeblood of your business, they should not only be compensated fairly but treated as vital components of your company. 3 Key Reasons Businesses Experience High Employee Turnover Fortunately, high employee turnover usually comes as a result of at least one of three reasons. If any of these are persistent in your business, it’s probably what’s driving your employees to quit after very short tenures. Here are the most common reasons that businesses experience high employee turnover: Compensation. This is the most obvious and is definitely among the top reasons employees don’t stay with their companies. Unfortunately, this doesn’t just apply to hourly workers, but salaried personnel as well. Paying at the bottom of the industry will practically guarantee that new hires become disaffected in short amounts of time and abruptly quit. Paying at the mid to high level of the industry is one of the best ways to avoid this problem, but that might not be applicable to all situations. Businesses already paying well might also consider little perks and incentives outside of pay, such as extra time off, gifts for meeting goals, and other types of incentives. Management. There’s just about nothing worse than bad management. Even people who are compensated very well will not tolerate bad managers for very long. If management does not treat their staff with the respect and professional courtesy they deserve, individuals will simply find other places to go. Bad management not only drives people to leave but also causes them to perform poorly while they’re at the company. So, take a deep look at the management’s style and execution and make changes if necessary. Culture. Company or corporate culture is also a very important factor in employees staying put. Just like bad management, individuals will not tolerate a toxic culture for very long. Even if management treats them well and they are compensated near or at the top of the industry, toxic culture will eventually erode their loyalty and they will leave the company. Although this is one of the most difficult factors to identify, it is essential that businesses foster a positive company culture in order to get the highest level of camaraderie and productivity from employees. What other suggestions do you have for dealing with high employee turnover? Please take a moment to share your personal experiences and relevant thoughts — it could greatly benefit someone else! Interested in learning more about business? Then just visit Waters Business Consulting Group.

5 Ways to Get Your Team to be More Creative

May 16, 2017 No Comments

It’s been amply demonstrated the mother of invention is necessity, which of course by its very nature, requires out-of-the-box thinking. That’s the fundamental dynamic behind creativity, allowing us to find new inspiration, dream-up new possibilities, and turn them into reality. Creativity itself is difficult to define by pinpoint details, though we all know when it strikes, it’s the proverbial “ah-ha moment.” This is one of the qualities you look for as a business leader–talented, disciplined individuals to join the team and infuse another level of inventiveness. Your organization needs as much resourcefulness as it can muster, but, there will be times when that flow of ideas and crafting slow down, or, worse yet, come to a screeching halt. That’s when you need to re-spark imagination and get your team to use their ingenuity. 5 Ways to Get Your Team to be More Creative So, how exactly do you cause inspiration to happen without being fake about it, or, without looking desperate for new ideas? More often than not, coming up with new ideas is not necessarily a matter of brainstorming, though it can be just that. Your team looks to you for direction, but sometimes, it’s best to look to them, and allow them to think just among themselves. Giving over the reigns of power is a proposition that few entrepreneurs relish because of their very nature. However, you’ve already taken a big chance to realize your dream, so, you are familiar with having to give up something in order to get something in return. Everyone can be creative–it has nothing to do with smarts. In fact, having smarts is no guarantee that you can or will be creative. But just what is creativity? Dr. Teresa Amabile of Harvard Business School defines it as the process of doing something differently that works. That’s it. Real easy. —Entrepreneur.com When those ideas slow and you become frustrated with the inevitable fallout, there are ways to inspire creativity in your team members. You don’t necessarily have to make an announcement that everyone needs to start coming-up with blockbuster next moves, but, you can do things to get the creativity flowing once again: Start with feedback on current and past projects. Look at customer feedback on past projects, particularly negative or ho-hum feedback. These will let you know where you failed to wow them and make future changes. In addition, take a fresh look at what you’re currently doing and play devil’s advocate to tweak where necessary. Take a little time to ruminate separately and then collectively. There’s nothing wrong with brainstorming, but don’t put the pressure on in an artificial way. Instead, let everyone separate, take time alone, and then come back and exchange thoughts. Give them a nice and inspiring change of scenery Get out of the workplace and go somewhere that’s beautiful and stimulating, and let the scenery work its magic. You might well be surprised by what inspires you and your team. Reverse engineer what already works. You no doubt have competitors, and, they no doubt have done things which have been a success. No matter what it might be, focus on it and reverse engineer just how they got from start to finish. During the process, you’re bound to come up with new takes and innovations. Reward team members for workable ideas. When you get good, viable ideas, be sure to give thanks with a reward. It shows appreciation and imparts a sense of genuine gratitude that will come back to you in a positive way. Once you do have a new direction, it’s always a good idea to keep your team motivated by rewarding them collectively as benchmarks are met. After you’ve crossed the finish line, follow-up with one-on-one, personalized “thank you” gestures. [shareaholic app=”follow_buttons” id=”26833294″]

Here’s What Small Business should Really Know about Retained Earnings

March 24, 2022 No Comments

The world has gone crazy. Well, it certainly seems that’s the case. Inflation continues to push up prices on just about everything. There’s a hot war in Europe that’s seriously impacting the free flow (and cost) of energy. All of this, not to mention an ongoing labor shortage, materials shortages, and plenty of other madness, wreaking havoc on day-to-day life. Of course, businesses aren’t immune to this madness — particularly small businesses. What this chaos does teach any entrepreneur or current business owner is the importance of retained earnings. But, what are retained earnings and how can small businesses build them up for difficult times that will inevitably unfold in the future? What are Retained Earnings Anyway? Retained earnings are an important part of any business. They are the funds that a company sets aside to cover expenses during tough times or to reinvest in the business. (Like now, when the entire world is topsy turvy and the economic circumstances are unstable and unpredictable, to say the least.) Retained earnings are an important concept in accounting. The term refers to the historical profits earned by a company, minus any dividends it paid in the past. The word “retained” captures the fact that because those earnings were not paid out to shareholders as dividends they were instead retained by the company. For this reason, retained earnings decrease when a company either loses money or pays dividends, and increase when new profits are created. —Investopedia.com During normal circumstances, retained earnings are generally used to expand. Examples include hiring additional employees, purchasing new equipment, bringing in new or more inventory to sell, or even acquiring new commercial property. But, when sales slow and the business isn’t earning enough, retained earnings can be used as savings to bridge the gap. How to Build Up a Business’ Retained Earnings One of the most important aspects of any business is its retained earnings. Retained earnings are funds that a company sets aside to cover expenses during tough times or to reinvest in the business. This money can be critical for businesses when they need to maintain cash flow during difficult periods or invest in new opportunities. There are two main ways to build up retained earnings. The first is to generate profits and reinvest them back into the business. This can be done by reinvesting profits into new products, expanding the business, or hiring new staff. The second way to build up retained earnings is to reduce expenses. This can be accomplished by cutting costs in areas such as marketing and/or overhead expenses. If you want your business to be prepared for anything, it is important to have a healthy retained earnings account. By reinvesting profits and reducing expenses, you can ensure that your company has the funds it needs to weather any storm. With a strong foundation of retained earnings, your business can thrive for years to come. Entrepreneurs should also Carefully Consider Retained Earnings if Buying an Existing Business When evaluating a company’s financial statement, it is important to look at the retained earnings line item. This number will tell you how much money a company has set aside to cover expenses during tough times or to reinvest in the business. If you are interested in investing in a company, it is important to make sure that its retained earnings account is healthy and growing. What else do you think new and existing business owners should know about retained earnings? Please share your own thoughts and experiences so others can better understand this important topic. Interested in learning more about business? Then just visit Waters Business Consulting Group.