Wendy Dickinson - "Catalytic Conversation$" Introduction Today our focus is increasing profitability and resilience. We’re working alongside you - as you work ON your business to be ready. It’s time to consider planting that proverbial “money tree” in your business’ backyard. Most of the world has enjoyed a number of years of relative profitability. COVID19 has interrupted the way most do business, which for many, led to a decrease in profitability. We know the recovery process will be gradual in many industries. Building your ERF (emergency recovery fund) to cover any eventuality will give you, your company, and your employees, customers, suppliers, and community peace of mind. The ERF will allow you to make decisions based on your dashboard of metrics. You can then pull in other tools from your back pocket like – your scenario plans, your available funds, and incorporate industry/market data in real time. Using profits to invest is a great way to build value and resilience for your company. Invest the time, energy and profit to secure a path through any eventuality - value added in any industry. During this episode my guest is Jay Cowan of Business Owner Exit Strategies. Jay is a long time advisor who has a personal stake in your success. He’s also a colorful character, so sit back and enjoy! If you’d like to get in touch with Jay, email him at jay@boesva.com. If you need help, consider becoming a member of IBGR’s Community of Commerce. As a member of IBGR's Community of Commerce you can:
Listen>Apply>Engage Show Objectives - The Why Amplify frugality as a company value. See increased profits as an opportunity to build out that emergency recovery fund – NOT up your take home pay. Communicate frugality as a value. Show the team that investing in the company takes many forms – maybe stocks/bonds, also ERF, delivery of goods & services, reduction in costs of goods/services sold, equipment, etc. This involves leadership of ideas and results – to be communicated to the team and modeled by you, the Executive. Key Issues - Owner Perspective: 1. See building your ERF (Emergency Recovery Fund) as a strength and a means to opportunity during adversity. Invest retained earnings to increase available cash during crisis. 2. You will have an idea of how to draft a pitfalls analysis to uncover weaknesses in the strategy and blind spots 3. Be able to identify possible pivots in your business model or operations, HR, or logistics plans to take advantage of every opportunity that change/disruption offers. 4. Build in industry data to add to your dashboard delivering the data you need to make decisions based on facts, not guesses. What You Need to Know - The What Dive into your Pivots & Pitfalls Analysis Process. This includes leadership of: You, as the Owner Executive, are the amplifier. All of the other variables: operations, customers, people on your team, are influenced and enhanced by YOU. You have the greatest impact on the financial outcomes of your company. Potential Problems: · Businesses are not ready for anything · Owners choose to increase their take home pay over making investments when profits increase – this impacts the valuation · Owners fail to invest to keep current, increase efficiency & productivity · Fail to plan for disruptions or innovations to supply chains, logistics, talent development, etc. What You Need to Do after The Pivots & Pitfalls Analysis - The How 1. Develop your list of likely scenarios. 2. Assess the adequacy of your retained earnings investments, your ERF, and cash on hand – is there enough to see the company through to recovery? 3. Identify the opportunities and risks within each scenario. Look back to your Pivot & Pitfalls Analysis for the information you need. 4. Develop an assessment for both the external and internal factors that could impact the business during each scenario. 5. Practice using strategic foresight to create business continuity plans for the crisis, the transition, and the recovery for each scenario. 6. Create learning and experience goals for each key position. Assign specific tasks to specific people to build organizational readiness and resilience. Build in cross training as needed. Shows
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