Launching or restarting a business takes time and careful planning. It’s a venture fraught with challenges, often leaving leaders facing these characteristic challenges:
Situation: Struggling Market Two co-operative agricultural companies were experiencing market drought. The owners didn’t get along very well and as competitors, they weren’t making conditions any more favorable for themselves. As a result, the idea of merging the businesses to achieve significant benefits for both didn’t seem plausible to either. However, their general managers saw things differently.
Situation: Inefficient Operations An injection molding manufacturer was losing money. Its costing systems did not allow it to track project details, such as quantity of product used, time required and resulting waste. Without being able to plan accordingly, it had surplus raw materials that would decay and inventory that had to be discarded because product formulations had changed.
It may be the last stage of the strategic process, but it’s the most important. You’ve spent significant time and effort developing market intelligence and building a plan, but a poorly written plan that’s well executed is still more successful than a good plan that is poorly executed.
Situation: Capital Constraints A retail Internet company working on very slim margins lacked the capital to build adequate inventory in advance of the holiday-season rush, its busiest time of year. The company had a $200,000 bank line of credit – it needed four times that amount to ensure it had enough inventory on hand to fill its holiday sales orders. To make matters worse from…
Business and vacations are alike in one way: once you’ve established where you’re going, a plan and a map to get there are very helpful. While even the best-laid plans require adjustments you are better off forging ahead with one than without one.
Situation: Lack of Forecasting and Talent: A multi-million-dollar e-commerce company purchased packaging from overseas and assembled baskets of product that were sold online. While the activity at the time was very successful with good capital, the owner was unable to forecast for the future. This was compounded by a lack of staff with the appropriate training and backgrounds needed to accomplish that very task.
Situation: Inadequate staffing A small, yet very profitable company in a growth phase was utilizing its Human Resources manager to look after the finances as well. It needed to divide those two roles and quickly groom someone for the position of CFO. The HR manager agreed to move over and undertake that new challenge despite not having a background in finance.
Whether you’re a new entrepreneur or the leader of a Fortune 500 company, doing business today presents universal business challenges. Managing the complications globalization, increasing regulation, new technology and a fast-moving economy all present requires precision and expertise. If you’ve lost your balance and find your organization in trouble, it doesn’t mean the show’s over. You can use these three steps to begin your recovery….
Navigating a dynamic and complex business world is no easy task. If you have been in business any length of time your company has managed to overcome all kinds of issues and challenges. As you face new challenges there is a good chance some of those trials will be best addressed with the help of outside assistance.