Don’t Wait Until it’s Too Late! 10 Things You Must Do Now

Customers aren’t buying, companies are closing, banks aren’t lending, consumer confidence is falling, and the list goes on. Many business owners hope things get better before it’s too late and are struggling to stay afloat during these tough times.

As a business owner, manager or leader, your choice is simple: Do what you know you need to do and do it fast, or die a slow death. Most people are afraid to make tough decisions or operate differently. They continue to hope their outdated business strategies will keep working as they tread water and wait for something good to happen. But running your company the same way you always have will result in failure. The successful will make tough decisions. What difficult choices do you need to make right now to grow your business and make a profit? Here are 10 things you must do right now:

1. Set goals to grow and make a profit. Stop lowering your prices and cutting costs. Start focusing on sales, customers and making money. Write down your annual targets for revenue, direct costs, overhead expenses and net profit for the next three years. This will get you aligned in a positive direction so you decide what steps you’ll need to take to achieve your goals.

2. Cut your fixed cost of doing business. Determine what your business really needs to prosper in tougher times. Decide how much overhead you can cut so you can make a profit with reduced revenue. Eliminate all unnecessary expenditures or underutilized people. Hold a company contest to see who can cut the most money from the budget. Sell or eliminate any underutilized equipment or assets. And if you can’t sell it, rent it out.

3. Preserve cash. In times like these, cash is king. Delay any major purchases. If you really need something, lease it on an “as needed” basis. Outsource or subcontract as many things as possible, including engineering, manufacturing, design, drafting, accounting, human resources, payroll, maintenance, training or trucking. The more services you outsource, the longer you hold onto your cash.

4. Cut your poor performers. Eliminate poor employees who have bad attitudes, stopped contributing, don’t make money or don’t fit into your long-range plans. Good people are easier to find now, so you have choices. Rate your people on an “A, B, C” scale. Keep the As, train and challenge the Bs, and replace the Cs.

5. Go visit your top customers. Most service businesses have a handful of loyal customers who provide 80 percent of their revenue. Make a list of your top 10, 20 or 50 repeat customers. Go see them and ask about their needs, problems and plans. Learn how your company can become a bigger part of their future, how you can provide additional services and solutions, and what else you can do to improve your relationship.

6. Seek new customers and markets. Continuing to sell your services or products to the same customers won’t give you better results. As sales opportunities decrease, you must increase your number of proposals to land the same amount of business. Your selling price might be lower, so more revenue will be required to hit your profit goals. Start looking for more customers, markets and