Friends, when times are good, we frequently act as if we can “afford” to be less effective as a business organization. We fail to review all the financial reports we should, we neglect the appropriate business systems we know are necessary. We allow this counter productive attitude, that sales cures all, to prevail.

The problem is when times get tough, as now, the bad habits, lack of controls, failure to effectively install appropriate business practises begins to show up and eventually could be the reason for an early demise. Because you waited to long to recognize the symptoms and do something to adjust, it will be too late when you figure it out. It mut be done now, in advance of your company entering into a destructive downturn.

Good business practises accomplish a few very important goals. First it maximizes profitability. Second it serves as an important information system, warning you when appropriate and informing you what is working and what is not working long before it becomes a problem. This allows you time to repair, adjust, change.

We are frequently reminded of the old saying, “…shutting the barn door, after the horse gets out!”  Waiting for the crisis and then attempting to fix it is a certain act of self destruction, and this we all know to be true! Yet we allow inefficient business practises to reign supreme during the good times, getting away with it, and when the tougher times come as it always does, we are ill prepared, as those same inefficient business pratises are wasteful do not support quality management decision making.

Thus I suggest you take the following self analysis survey and if you get a few too many negatives, you may conclude that you are unprepared to weather the storm we are all enduring and had better make some changes as soon as possible, or the chances of you becoming a statistic are vastly increased.

Ask yourself the following questions:

1. Do you have adequate credit terms with your suppliers?

2. Do you have adequate reserves in your operating account?

3. Is your management team functioning as a team? Is your management org. flat or a pyramid?

4. Are your accounts payables current within net 30?

5. Do you receive, read, understand and manage your business as a direct result  with daily, weekly, monthly, quarterly, and annual financial reports? Do they include a key indicator system to track, monitor and control your operation?

6. Do you have a sales and marketing plan with specific objectives and benchmarks? Adjusted for the changing market conditions? Frequently reviewed and adjusted for success and failure.

7. Do you have an employee career path including training, reviews and an incentive based reward system?

8. Do you have a financial plans, an operational plan,  growth plans, downsizing plans, a business plan?

9. Is your debt load under control? Is it too high? Do you have a plan to handle your debt?

10. Are you operating tax smart?

11. Are you growing, downsizing, buying your competition or liquidating your assets, what is your plan to take advantage of the down turned economy and troubled market place?

If you can answer these questions adequately and to your satisfaction, assuring yourself that your business s running like a top, that you have implemented all the appropriate and necessary business systems required to manage track and control your business efficiently and profitably, you are in great shape.

If you have all the appropriate business plans in hand and ready to implement, if you have the key indicator system tracking, monitoring and helping you control your business, then you are ready for the tough times we are involved in.

In fact as I have written about elsewhere, its tough times like we are in that provide exceptional opportunity for real advances, if we are astute enough to recognize this and act upon it.

If you cannot answer these questions satisfactorily, get the help you need quickly, catch up…before its to late. Feel free to use this outline as a plan of action, fulfil the requirements and you will survive.

Call me if you need some help. 413-549-2966.