Best Practice Consulting

Understanding employee engagement

Sat, 27 Feb 2010 12:40:00 GMT

Are your employees feeling appreciated? Do you and your managers understand what motivates your people? Is your organisation stingy when it comes to rewarding your people?

A number of recent surveys of employees working in SMEs have highlighted some key points about employee engagement. Here are some of the results:

62 percent of employees have rated their managers as "Very Poor", "Poor" or just "Satisfactory" at delivering specific and timely praise.
52 percent of employees say not receiving any recognition would be a contributing factor in their decision to leave their organisation.
40 percent of employees are actively considering leaving their current employer.

So what does it take to keep your good employees happy?

Broadly there are three factors (desire, cost and obligation) which influence an employee's level of engagement at work.

An employee's desire to engage is based on their level of emotional attachment to the organisation. If a staff member can personally identify and align with the vision and goals of the organisation they will feel engaged in their role and provide products and/or services to clients in the best way possible. These employees can be further engaged by positive feedback, career advancement and training and development.

The costs of leaving from an organisation might be viewed as being harmful to an employee. In other words, an employee thinks that by leaving, they may lose their friends/colleagues, high paying salary, bonuses, accrued leave, etc. Staff incentives such as long service leave or flexibility in working arrangements can help engage these staff members.

Some employees feel engaged through a sense of obligation to the organisation. This happens when employees feel a level of indebtedness. In other words - they are engaged because they 'ought to be'. Offering ongoing training and development programs and personalised bonus structures can help engage these staff members.

If you are worried your organisation suffers from an employee engagement problem or you'd like some perspective about what's really taking place in your organisation, pick up the phone and contact us now to take advantage of our FREE initial consultation.

A client-centred approach to business development

Fri, 26 Feb 2010 22:30:00 GMT

Businesses are often complacent about securing new and better quality clients, so that their development activities are minimal, or are not targeted to specific clients. Business development strategies are a key area to get right if you are striving to grow your client base or wish to discover ways to attract better quality clients.

Business development involves taking action so that it is better able to meet the needs of clients. This implies that your business:

has assessed the general and specific needs of clients
uses targeted business development strategies linked to specific needs
has ways of working that make clients feel comfortable and that address their specific needs
is open to regular feedback
is committed to continuous improvement.

Why use business development strategies?

Most businesses would agree that they primarily undertake business development strategies to grow their client lists and their revenue (= quantitative growth) and/or to get better at what they do (= qualitative growth). The most effective way to achieve both forms of growth is by focusing on meeting the needs of your clients. In a business development sense, meeting client needs is good for business because happy clients will return to your business time and time again. This builds repeat revenue. They will also usually refer people they know to the business, which in turn fuels word-of-mouth marketing and builds revenue further. In addition, feedback from clients continues to raise the bar in terms of quality.

So how do you undertake business development?

To ensure that you get the right clients for your practice the following four-step process is useful to consider.

Step 1: understand client needs

Generally speaking all clients have four basic needs: to (a) be understood; (b) feel welcome; (c) feel important and (d) feel comfortable. However, there are a multitude of specific needs for people of different ages, sex, ethnicity, etc. Each of these needs must be catered for. The best way to determine your client needs is to ask them via client detail forms, one-on-one discussion and client surveys.

Step 2: Align services with client needs

Once you fully understand client needs you need to link them to your business products or services using communication strategies, so that in the client's mind their needs have been addressed. For example, if you run a medical practice a portion of your clients may regularly travel overseas so you could offer a travel vaccine service or a medical assessment service to address this need. The key business development function here is to let clients know about this service that aligns with their need.

Some strategies to deliver information to clients include the following:

Newsletters
Websites
Articles, reports and e-books

Step 3: Provide services and an experience that meet or exceed client expectations

Team members need to be involved, empowered and trained to understand client needs and respond accordingly. Business owners and managers play a vital role in ensuring the team has clear guidance of what to do and why. Standardise the way you work so that you perform at a consistently high level. Make use of an office manual and use this as a resource for facilitating shared understanding. Always work on trying to exceed client expectations as part of your continuous improvement strategy.

Step 4: Determine whether client needs have been met

Ways to determine if client needs have been met include face-to-face meetings, follow-up phone calls or client satisfaction surveys.

Client satisfaction surveys allow for the collection and analysis of a large number of responses. Your survey should have specific questions about their needs, whether these needs are met, areas for improvement, etc. If you run a business which receives referrals, it is essential to survey clients and referrers as it is important understand the needs of both parties and to foster both relationships.

Once you have analysed your results share these with the team for their thoughts and feedback. Clients and staff may come up with a number of areas for action which affect business development, such as introducing new or improved services, changing staff attitudes to be more client focused, or using more effective written and verbal language to communicate with clients.

In conclusion
It is essential that business development focuses on meeting the needs of clients. Business development binds together all aspects of your workplace and is part of everyone's role within the team. It is something we should all aspire to do on a day-to-day basis.

If you would like to take your business to the next level or you'd like some perspective about what's really taking place in your organisation, pick up the phone and contact us now to take advantage of our FREE initial consultation.

Tips to Boost your Business Performance - Part 2

Mon, 31 Aug 2009 08:54:00 GMT

Business success seems simple enough: you begin with a plan, you have some goals and strategies and you carry them out. However, the reality of operating a business can be very different.

The joy and freedom of running your own business can be clouded when business owners struggle for direction, get swamped by administration, suffer inconsistent cash flow and get stressed about staff or clients. Sound familiar? These problems can distract business owners from growing and taking their business to the next level.

Here are the next five tried and tested tips which will boost your business performance.

Tip 6 - Hire the best staff you can find and build the dream team. Get the right people with the right attitudes, beliefs and skills in the right positions. It is your staff that can provide a positive experience for your clients and make the wheels in the business run smoother. This is such an important area to get right.

Tip 7 - Reward excellence. If you want the best team, you are going to have to make a solid financial investment in the right people. Pay people a fair and reasonable salary or wage, then offer additional incentive payments. These incentive payments should be linked to a person's individual performance and the overall performance in the business. The process for calculating incentive payments needs to be transparent and clearly communicated to staff. Incentives are an important recognition tool and a way of sharing the businesses success with staff due to their efforts.

Tip 8 - Invest in staff training and development. Ongoing (internal and external) training programs demonstrate to staff that the organisation is genuinely interested in and responsive to their needs for improvement. The organisation also benefits by equipping staff with the skills and tools to perform at their best, which is good for business.

Tip 9 - Streamline and systemise. In Demings immortal words "96% of your success depends on your system". Think of the differences between a business with documented procedures and systems and one without and then consider what would happen to each business if the owner or manager were hit by a bus tomorrow. Which would survive? Create processes and systems that standardise your business operations and save time, energy and money in the long run.

Tip 10 - Be committed to continuous improvement. Review your practises, operations and performance regularly. Take time out to reflect on lessons learnt to improve the way you do things.

If you think your business performance could be better or you'd like some perspective about what's really taking place in your organisation, pick up the phone and contact us now to take advantage of our FREE initial consultation.

How to reach your business goals

Mon, 31 Aug 2009 08:31:00 GMT

There are business owners who continue to grow their business and always seem to go from strength to strength. Then there is everyone else who is well intentioned but struggle with the time to manage their business, let alone set goals and then work on achieving them.

It is a proven fact that most small to medium sized organisations do not have a written business plan. No documented business plan means that objectives and strategies are not captured, resulting in a business that lacks direction. In addition, an organisation without a business plan will often lack the confidence to solve their business issues. When business issues remain unresolved they can adversely affect cash flow, revenue and profitability.

The truth is that this lack of formal business planning is one of the major causes of business failure.

A business plan sets out what a business proposes to do and how it proposes to do it. Here are few practical steps to help create a powerful business plan to drive the success of your organisation.

Step 1 - Look at the strength and weaknesses of your competitors. By researching your competitors you are better equipped to understand why clients are attracted to your competitors (i.e. their strengths) and what gaps or niches exist in the market place (i.e. their weaknesses).

Step 2 - Outline the strengths and areas for improvement in your business.

Step 3 - Define the vision for your organisation.

Step 4 - Define your goals. These are areas you want to improve. Typically objectives tend to be financial, operational, business development, staff and IT related. Objectives should be quantifiable by an absolute amount, a percentage and have a specific timeframe for achievement.

Step 5 - Create the strategies which will deliver performance improvements, i.e. how your business will get there.

Step 6 - Identify a timeframe and owner for the achievement of each strategy.

The process of creating a business plan is more important than the document itself.

The process of business planning is beneficial because it gives you:

- A chance to stop, reflect and learn from past mistakes or wins in your business.

- An opportunity to discuss and exchange ideas with members of the team.

- A forum to think critically about goals, e.g. revenue and profit, and this results in targets being set which motivates the team to improve.

High-achievers in the small-to-medium size business sector admit that the turning point in their business was when they prepared their business plan.

Once you have created a sound plan, it is then essential to implement the plan with the support of the right process and people resources. In addition, it is essential to identify intervals for the review of performance against all objectives e.g. monthly, quarterly, annually. This will give feedback as to whether your strategies are working and give you an opportunity to change strategies if need be.

A well thought out business plan is the key to the long-term success of any business. Whether you are just starting a business, buying one already established or perhaps in need of extra finance for expansion you will need a business plan.

If you would like to create a business plan which will deliver the results you want or you'd like some perspective about what's really taking place in your organisation, pick up the phone and contact us now to take advantage of our FREE initial consultation.

Tips to Boost your Business Performance - Part 1

Fri, 31 Jul 2009 15:49:00 GMT

Business success seems simple enough: you begin with a plan, you have some goals and strategies and you carry them out. However, the reality of operating a business can be very different.

Here are the first five tried and tested tips which will boost your business performance.

Tip 1: Start with the end in mind. Regardless of whether you are up to your neck in issues or run a successful business, it is essential to write down measurable goals and develop strategies for achieving these goals. Moreover, be sure to stay focused on things that meet you goals first, rather than being distracted by trivial issues.

Tip 2: Measure your performance using a range of indicators. This vital area is often overlooked, despite the fact that many of the information management systems have good reporting functions. It is fundamental to measure financial performance such as: revenue, expenses, operating profit and cash flow. However, other areas are also important to measure such as: lead generation, sales conversion, utilisation of billable professional staff, staff turnover, level of workplace injuries, level of client satisfaction, etc. The feedback you get from measuring your performance on a regular basis will let you know whether your strategies are working or not. This allows an opportunity to change or modify strategies if necessary.

Tip 3: Focus on your ideal clients. Unfortunately many businesses never analyse their database to determine their ideal (most profitable) clients. In addition, many also do not have strategies to attract ideal clients and convert them into sales. This is a big part of growing revenue. I believe every aspect of business development should be design to support the attraction and conversion of ideal clients into the business.

Tip 4: Deliver outstanding client service. Once you have attracted your ideal clients, ensure that every step of the client experience delivers a client-focused approach. Happy and satisfied clients will do business with you time and time again which builds ongoing revenue. In addition, they are great advocates for your business and they fuel your word-of-mouth promotion, which attracts more like-minded clients. Delivering outstanding client service can be a key point of differentiation for your business.

Tip 5: Get regular feedback from your clients. I believe it is essential to conduct client satisfaction surveys in order to make sure your clients' needs are being met, to find out what they like about you, what they don't like and why they do business with you. This data over time provides valuable feedback on how you can further improve the service you offer to your clients.

Stay tuned for the next five tips in the next article.

The benefits of using a Business Coach

Tue, 16 Jun 2009 21:58:00 GMT

"A business coach can help identify the ISSUES in your business and provide practical SOLUTIONS so that you can reach your business goals faster"

Do you want to boost your business performance? Do you seek to gain more control of your business? Are you open to ways of improving your business?

During this article you are going to discover the benefits engaging a business coach can bring to your business.

Most businesses are started or purchased by people who are good at what they do. Unfortunately, many of the courses and practical experiences that have helped people become a great dentist, lawyer, graphic designer, etc have NOT equipped them with the essential knowledge and skills to run and build a thriving business. Often the business experiences come from hard-fought first-hand lessons, which can be both costly and stressful for the business owner.

Sometimes business owners get swamped by all the tasks of running a business, which causes them to lose focus and feel overwhelmed by problems such as:

A lack of purpose;
Fluctuating sales;
Inconsistent cash flow;
Inadequate profit and
Staff management.

Businesses who suffer from any of the above issues can benefit from the services of a business coach. However, some people think that only a struggling business would engage a business coach. The reality is that many successful businesses use business coaches as their secret weapon.

What is a business coach? Every great athlete is surrounded by coaches, mentors and advisors. Therefore in a business context, think of a business coach as a mentor or advisor who can help you set goals, implement strategies and track your progress so that you can reach your goals in the shortest possible time. You also benefit from a non-emotional objective view of your business and their experience in handling a vast range of situations.

Business coaches represent a great investment when you consider the financial return and other benefits of their advice. Starting from as little as a few hundred dollars per month, a business coach can help you:

Increase your marketing effectiveness and sales conversion to grow your revenue.
Improve your expense management and grow your profitability.
Increase the level of customer satisfaction which can fuel your word-of-mouth promotion and ensure ongoing revenue for your business.
Attract, manage and retain quality staff.
Create efficient and effective processes and systems which will result in a smooth operation.
Develop control reporting systems so that you gain feedback about your business performance.

In addition a business coach can help you:

Clarify your vision and purpose
Solve your business problems or frustrations
Identify and take advantage of opportunities
Navigate through a changing market or economy
Develop and refine your ideas
Become more accountable
Design a plan of action
Communicate more clearly and confidently
Become a more effective leader

Click on the video below to hear one of our clients talk about the experience of using a business coach.

Best Practice Consulting - Sean Steele from the Best Practice channel on Vimeo.

Business coaches won't work for everyone! Typically clients who get the most out of the process are:

(1) Ready mentally, physically and emotionally for change;

(2) Are willing to make the financial investment and

(3) Are 100% committed to achieving a great result.

If you are worried about an aspect of your business or you would like an objective view of how you are performing or you would like to take your business to the next level, contact us. If you are ready to take action, fill-in the form below and one of our business coaches will contact you.

It's Tax Time - Again!

Tue, 16 Jun 2009 14:45:00 GMT

It's Tax Time - Again!

"Find out how you can LEGALLY MINIMISE your TAXATION obligations"

Some business owners simply pay too much tax! This occurs because they do not use strategies which legally minimise their taxation obligations. As a result the business can suffer a drain on cash flow and in the end the money goes to the taxman instead of you. Therefore, we recommend to all our clients that they plan (with their accountant) for their taxation liabilities and consider appropriate tax deductions prior to June 30.

Some suggested deductions include:

Increasing superannuation payments for directors; however, this is subject to the maximum contribution and also depends on your cash flow position. From 1 July 2009, the maximum deduction for superannuation will be: $25,000 per year (previously $50,000) for the under 50's and $50,000 per year (previously $100,000) for the over 50's.

Making the necessary superannuation payments for all staff.

Purchasing work related equipment. In the recent budget, a bonus deduction of 50% for small businesses (with gross turnover of less than $2,000,000) is available for purchasing new equipment, provided it is installed and ready for use by 31 December 2010. Businesses with turnover of more than $2,000,000 will receive the 30% bonus deduction. Equipment includes common business appliances, such as fax machines, computers, plant and equipment and industrial machinery such as harvesting equipment, cranes, and bulldozers. Cars also can qualify for this bonus tax deduction, with pro-rata adjustments for private use.

Bringing forward spending on repairs and maintenance.

Purchasing additional work related supplies and stationery.

Making donations to registered charities.

Writing-off bad debts provided you can prove that you have taken reasonable steps to collect them.

Some of the above strategies (where applicable) can be useful for reducing company taxation liabilities. Please note - this information does not warrant advice and all taxation strategies should be discussed fully with your taxation accountant.

Eliminating a culture of blame

Fri, 06 Feb 2009 07:22:00 GMT

"Is your organisation emotionally charged because it suffers from a culture of blame? Do you feel like you have lost control of your staff? Discover today one of the best tools for effective staff management!"

"A great workplace culture is integral to the success of your organisation". Yes that's right - that touchy feely area that many of us don't really understand might be the mystery ingredient you are missing to build a truly great organisation.

In this article we will look at the number one problem in most organisations today - that is a "culture of blame" and what you can do to change this culture so that your organisation can focus on the important areas that contribute to success.

So why does a culture of blame run rampant through some organisations?Sometimes it results from bullying leaders who create a culture of fear. Sometimes it results from a "good news" culture which is created when the leader is only interested in hearing good news. In such organisations staff tend to shy away from passing on bad news because it is common practice to "shoot the messenger".

How does a culture of blame impact an organisation?

(1) Blame has an emotional context. Cultures of blames usually operate with emotions of fear, anger and resentment which create dysfunctional relationships and poor staff morale.

(2) Blame shifts energy and focus. As a result of fear-based emotions linked to blame, staff shift their energies from the interest of the group towards self-preservation.

(3) Blame creates biases. As mental energies shift to defending one's own position, biases are introduced that alter the accurate perception and assessment of situations.

(4) Blame inhibits creativity. When blame is prevalent, fear exists and individuals tend not to take risks or to think creatively, favouring instead the avoidance of blame.

(5) Blame is expensive. Blame has very real costs to an organisation via poor quality, service failures and lost customers. In addition, poor staff morale and high staff turnover add increasing costs to the business via recruitment and training. Finally, the lost opportunity costs of low innovation, inability to create better products, quality and service will lead to a substantial negative impact on the revenue streams of the organisation.

Playing above or below the line - a model for managing cultures of blame

What is playing below the line? In an organisation whenever you find people deflecting attention from the real issue either by pointing the finger and/or looking to blame others - then we have someone playing below the line. Blame, excuses and denial become the norm and this in turn negatively affects workplace culture.

Below the line behaviours: blame, excuses and denial.

What is playing above the line? This involves staff in an organisation accepting responsibility for their actions and behaviours. Once all people in your organisation (especially leaders) start living and breathing the principles of ownership, accountability and responsibility a positive culture is created.

Above the line behaviours: ownership, accountability and responsibility.

Playing above the line is not easy, but it is very rewarding and empowering. This is because we grow-up (start displaying adult behaviour) and we get to experience the power of our choices and our actions, and we are no longer "think and feel" we are helpless victims.

Here is an example to illustrate the difference between playing above or below the line. An employee arrives at work and says "I am late because I got caught in a traffic jam". Now the traffic jam could have been due to an accident that no one could have predicted. Below the line language would be: "I am sorry I have kept you waiting. I got caught in this terrible traffic jam...." and go on and on with the story justifying your lateness. Above the line language would be: "I am late and I apologise for keeping you waiting". Here the individual demonstrates ownership and takes responsibility for being late and its impact. The reasons for lateness are not important.

Ways of eliminating a culture of blame

The elimination of blame from the culture of an organisation can be a complex and slow process, but here are a few practical tips that might help.

(1) Share your mission with the team and clearly define the role each person plays in achieving the big picture.

(2) Have a values, behaviours and process focus instead of blaming people.

(3) Use effective communication techniques which consider other perspectives and check assumptions before reacting.

(4) Use the playing above or below the line model and make sure everyone in the organisation (especially leaders) are accountable.

When leaders focus on values, behaviours, processes, sharing purpose and communicating effectively - blame based behaviours gradually lessen over time. Most importantly, trust among team members is enhanced and staff can begin focusing on improving organisational processes and achieving outcomes.

To get the best results for your organisation, you have to get the best out of your people and your human resource management processes will greatly assist in maximising the benefits to your organisation.

If you are worried your organisation suffers from a culture of blame or you would like some perspective about the culture that is really taking place in your organisation, call us. The quicker you take action - the quicker one of our business coaches or consultants can help develop practical solutions to improve your staff management and workplace culture.

The Secret to Employee Engagement

Sun, 14 Dec 2008 21:49:00 GMT

"The Secret to Employee Engagement"

Are your staff giving 100% to the organisation? Do they feel valued and appreciated? Do they show-up each day with passion and purpose?

If you answered "no" to any of these questions - your organisation has an employee engagement problem. But don't worry - you are not alone. The Hewitt Best Employer Survey results suggest that engaging staff is a big challenge for most Australian organisations. According to their most recent survey - the national average for employee engagement is only 54%.

So why is employee engagement a problem? In Australia unemployment is running at historical lows, we are experiencing an unprecedented skills shortage in various sectors and many organisations have failed to create workplace environments which truly engage staff. These factors have resulted in a highly mobile workforce, which is costly to the organisation in terms of productivity and profit.

The secret to employee engagement is capturing the hearts and minds of your employees. The difficult part is discovering what truly inspires staff to perform above and beyond. Once you discover how to engage your staff the benefits include: a happy and healthy work environment, a more productive team and a more profitable business.

Here are ten tips on creating and sustaining employee engagement.

1. Let go of the negative thoughts you have about your employees. Each person in the team has unique knowledge, skills and something valuable to contribute. Rather than focussing on the weaknesses of a staff member it is important to focus on their strengths and place staff in positions where their strengths are best utilised.

2. Be nice to your staff. Noticing and acknowledging the contribution of your employees and treating them well will have a profound impact. However, staff usually forget compliments quickly, so it essential to give these out regularly and in an authentic way. Also be aware that people like to be noticed in different ways. Some prefer a quiet praise. Others prefer open acknowledgment in front of their peers.

3. Get to know your staff. Show an interest in your people and genuinely get to know them. Understanding the stress factors and motivational drivers for each staff member can be extremely useful in managing them. This will make you more approachable making you the first person they come to when there is a problem. In addition, introducing some light hearted activities into the workplace can change the tone and mood of the organisation.

4. Use clear and regular communication. Staff like to know 'what is going on and why', especially when changes are planned. Regular feedback to staff helps reduce damaging corridor gossip that can be an undercurrent of misinformation. In addition, it is essential to clearly communicate your expectations of staff so that they can be productive and meet targets.

5. Hold performance reviews. Staff are always keen to receive formal feedback on their progress. Using a twice yearly - 360 degree review process (i.e. feedback from superiors, peers, support staff and some clients) is ideal. The process is also a great way of formally acknowledging the contribution of staff. When staff do not receive feedback and do not see any future with the organisation, they quickly start to look for greener fields.

6. Equipping your staff with the right tools. Following a performance review, training needs should be identified and appropriate courses need to be selected for staff to undertake. Ongoing training programs show staff that the organisation is interested in and responsive to their needs for improvement. You also equip staff with the skills and tools to perform at their best.

7. Offer career progression. An important driver in keeping staff engaged is to offer a career development program for each staff member. Opportunities need to be identified for appropriate staff and they need to be groomed for positions via training and mentoring.

8. Provide inspiring leadership and give individual autonomy. When new employees join an organisation, leaders need to impart the values and aspirations of the business. Staff look to management for leadership and direction, but this does not mean they need to be monitored every step of the way. No one enjoys being micro-managed! Instead inspire excellence in your staff and allow them the freedom and autonomy to deliver on tasks.

9. Remuneration and incentives. So that salaries are fair they should be monitored on an ongoing basis to keep track of changes in the market for different job roles and experience levels. Employers should also adjust salaries yearly for those staff not changing their roles and responsibilities, to ensure staff don't fall behind. Many workplaces have also introduced incentive payments that are linked both to the person's individual performance and the overall performance of the organisation. The process for calculating incentive payments needs to be transparent and clearly communicated to staff. Incentives are an important recognition tool and a way of sharing the organisations success with staff due to their efforts.

10. Flexible working arrangements. Lifestyle and work-life balance are becoming important for today's workforce and employers need to adapt and offer greater flexibility. Some workplaces offer flexible working arrangements or have wellbeing and lifestyle programs in place, such as gym membership and cinema admission for their staff. These programs demonstrate the caring nature of the organisation.

Our experience with clients is that those organisations that have processes in place to manage the above tips are more successful because their staff are engaged and committed. Not surprisingly, their staff work harder, perform that extra 10%, accomplish more, are more loyal and speak positively about the organisation.

If you are worried your organisation suffers from an employee engagement problem or you'd like some perspective about what's really taking place in your organisation, contact us. The quicker you take action - the quicker one of our business coaches and consultants can help you develop practical solutions to improve your staff engagement and commitment.

Recession Proof Your Business

Sat, 08 Nov 2008 14:04:00 GMT

"ARE YOU WORRIED ABOUT HOW A RECESSION MIGHT AFFECT YOUR BUSINESS? DISCOVER TODAY HOW TO RECESSION-PROOF YOUR BUSINESS!"

Australia is feeling the pinch of recession and as a result many business owners fret that this will mean fewer customers and reduced sales as people limit their discretionary spending. Therefore, it's critical for business owners to take steps NOW to minimise the damage to their businesses that could happen as a result of a recession.

Many organisations during tough times take the traditional approach and make the mistake of initially cutting back expenditure and laying-off staff. These measures only focus on controlling costs and addressing short term needs. This one sided approach can be harmful to your revenue and does not position your organisation to capitalise on the return of better times.

Here are some practical tips for recession-proofing your business.

1. Stay focused on your long term goals. There is nothing more destructive than business short sightedness. You may experience rough times, but do not get too distracted in the present situation. Rather keep focused and make every decision beneficial to the present and the future.

2. Control costs. Great organisations have a willingness to listen to everyone within the business and pay close attention to their ideas and suggestions. Employees will often have powerful money saving ideas. There is no better time to implement these measures than during an economic slowdown, but make sure that these reductions do not impact revenue in a negative way.

3. Control inventory. During harder times, the last thing you want to do is get stuck with piles of inventory. Move to a just-in-time ordering system, establish inventory targets and make sure your sales and purchasing staff are communicating.

4. Use effective marketing and communication strategies. The first and easiest reaction for many businesses is to cut marketing and communication expenditure. This can have a detrimental effect on future revenue streams for the business. During a recession you need to re-assess your marketing strategies to make sure they are cost effective. If you are not seeing a good sales effect from every dollar spent on promotions, then you are wasting valuable resources.

5. Maintain prices. During quieter times you may be tempted to slash prices to generate more business. Generally, this is a poor strategy, as it dilutes the value of your product or service and also reduces your profit margin in the process.

6. Deliver outstanding customer service. When money is tight, customers often expect more for their dollar. If you want to keep their business, you must keep them happy. Ensure that every step of the customer experience delivers a customer-focused approach. The use of flexible payment arrangements is often regarded positively by customers. You may also like to conduct customer satisfaction surveys in order to make sure your customers' needs are being met.

7. Listen to your customers. During a downturn many of your customers will be feeling the pinch and they may have suggestions for your business. Don't take their suggestions lightly as they may be offering you an entirely new and profitable product and service line.

8. Invest in employees. During a recession most casual and non-essential staff are typically reviewed and stood down if necessary. However, some businesses make larger layoffs and what needs to be remembered is that most economic downturns are short-lived. Permanent employees that are asked to leave during a recession will have to be re-hired-which is costly for companies in the long run. During recession times talented people will leave or be let go by your competitors and if your company can afford them - this is a terrific time to add their skills, experience, fresh thinking and ideas to your company. At the same time, your current staff's morale will remain high as they won't feel threatened by layoffs.

9. Improve your cash flow. Delay purchasing any non-essential capital purcahses. If you are feeling the pinch during uncertain times ask your suppliers for extended payment terms. This is also a time to collect all outstanding debts. Having cash on hand will help your business meet commitments to staff and suppliers and facilitate the future growth of your business.

10. Streamline and systemise. Create processes and systems that keep your operations flowing smoothly - and save time and money in the long run.

Many people worry about how harder times will impact their business, but the truth is that businesses can prosper in recessionary times by applying sound and effective business strategies. Importantly, it is essential to take greater control of all facets of your business and monitor your performance on a regular basis.

If you are worried about an economic downturn and would like to 'recession-proof' your business or you'd like an objective view of the limiting factors affecting your business, contact us. The quicker you act - the quicker one of our business coaches or consultants can help you take action to position your business to not only survive but prosper during the harder times.