Leverage Five Steps to Environment a Changing Business Guest Editorial by Lee Richardson, Successful Ventures Coaching and Consulting The story goes: “A leading University did a study a few years ago and made three predictions for the coming year: 1) there will be more changes than ever before. 2) more competition than ever before. 3) there will be more oppor- tunities than ever before.“ This seems to have held true for many years. Most readers missed the conclusion of the study: “Those who do not adjust to the rapid rate of change, respond to the increase in competition, or take ad- vantage of the new opportunities will be out of their jobs within two years.” For several months indicators have shown a broadly im- proving economy. Unemployment is trending down. Con- sumer confidence is trending up. The stock markets are at record highs and politicians of all flavors are claiming credit. How do you and your business prepare to take ad- vantage of this much improved situation? Here are five steps that will help you along the way: 1 HAVE A PLAN. You should know where you are in terms of financial and operational performance. Where would you like to be in 6-12 months? Start with that vision and work backward to your reality. What changes do you have to make to realize the results that you want? What do you have to do to make those changes reality? Make sure your plan includes follow up and ad- justment points. 2 HAVE THE RIGHT TEAM. This may be the hardest task of the leader. You must be realistic and honest in your appraisal of your entire team. Does each mem- ber regularly hit their performance goals? Do they repre- sent your company well? If they can’t grow and carry you into the future you need to make a change in responsibili- ties. The really hard part of this is to evaluate yourself. Are you staying abreast of industry and technological develop- ments? Are you hitting your performance metrics? We tend to focus on the under-performers. Don’t forget to identify your over-performers as well. They are probably the future of your company. Develop and nurture them. KNOW YOUR NUMBERS. Start with your operations. Know your cost inside out and upside down. I see too many businesses owners who wonder why they lose money on a job…until we go back and look at their cost. In some cases, they didn’t even cover direct costs. Once you establish your fully loaded cost, the only number to adjust is your profit percentage. Do not cut too closely on profit! Now understand your sales numbers. There is always a relationship between the number of bids/prospects and the number of jobs that you actually get. Understanding this ratio will let you project your rev- enue over the next several months and will also provide guidance for your sales team on their activity levels. 3 4 KNOW YOUR COMPETITION. Understand the things that they do well and the things that they don’t. Make sure your sales team is selling your strengths, and not running down the competition. When you look at your competition, is there a hole in the market that is under-served? Are you positioned to exploit that hole? 5 Helping you chart your course to success 803.431.9493 phone | 866.285.3818 fax info@successful-ventures.net successful-ventures.net 115 Doby Creek Court, Fort Mill, SC 29715 12 – July/August 2013 — The South Carolina Construction News KNOW YOUR CUSTOMERS AND THEIR INDUSTRIES. If your customers are in declining industries, it’s prob- ably time to look for some new customers! Many of our businesses were set up to serve the textile industry, or the hospitality industry, or the financial services industry. All industries have ups and downs. Those fluctuations don’t have to spell hard times for our business, as long as we are aware that they are coming. Make sure that you and your business don’t miss the conclusion! Lee and Lauren Richardson formed Successful Ven- tures Coaching & Consulting, Fort Mill, to help business owners and executives navigate the many challenges they face each day. Lee is an Army veteran, graduate of Wofford College and a native of upstate South Carolina.