It’s tough going out there right now. NZ’s cost of living crisis is leaving no-one unscathed; whether it’s surging petrol prices, the increased cost of living, record inflation outstripping pay increases, or all of the above, we’re all, in one way or another, feeling the pinch. Add to that warnings of an impending recession and you’d be forgiven for feeling somewhat overwhelmed with the task of growing your business.
But, as the old adage goes, when the going gets tough, the tough get going, and while these testing times present us with numerous challenges, they also offer opportunities for those looking to future-proof their operations and strengthen relationships with employees and customers.
Here are some practical solutions that could help you take your business from ‘surviving’ to ‘thriving’ in 2022 and beyond.
1. Re-evaluate the needs of your workplace
It’s safe to assume that no business operating today is the same as it was prior to 2020. All those who have made it this far through the pandemic storm have had to make adjustments to remain viable today. If that’s you, well done on making it this far. We are, of course, still faced with a variety of spin-off challenges and one way we can manage these is by taking a moment to consider how far we’ve come and where we’re headed next.
For example, is your head count still the same and, if so, does it need to be? Perhaps you can see opportunities for simplifying your organisation, or maybe it’s time to grow your workforce so you can take your business to the next level? Is the way you organise your teams bringing out the best in your people and the product or service you deliver to your customers? And what about the topical issue of skills. Are your employee skill sets fit-for-purpose to meet the ever-changing needs and demands of your customers? Or, is it time to upskill – or reskill – your team members and find new ways to grow and retain your key talent. With NZ facing a skills and labour shortage, it’s a job seekers’ market out there, so investing in your people is not only essential for business development, it’s a key tool to retain and nurture your most important asset.
2. Identify small changes that can save you big dollars
Finding ways to cut back on operating expenses can be challenging, since maintaining quality is important during a recession, but making small changes can positively impact your cash flow and bottom line.
For cashflow…
– Consider early payment discounts from your debtors, or ask your own suppliers if they’d consider the same
– Claim what you’re owed as quickly as you can; don’t wait until the end of the month to send out invoices
– If you’re engaging in a longer-term project, consider requesting progress payments, or an upfront deposit
When it comes to your biggest expense – your people – not everyone who works for you has to be a full time equivalent…
– Consider a mix of labour between full time workers and contractors
– Think about automating traditionally manual tasks, such as payroll, e-commerce reminders, or even recruitment. This can also unlock huge time and money savings
– You don’t have to (and shouldn’t) do it all yourself!
3. Remember, your clients are king
Recession or no recession, your clients are king. Their loyalty got you through a pandemic and it can get you through any future challenge too, if you treat them properly.
Now is the perfect time to check in with your customers and understand their changing needs. How are they surviving? Have their future goals changed? Have they restructured their business or ways of working? How can you help them meet their next growth goal? Stay close and be open to evolving your approach alongside them.
You might also consider rewarding customer loyalty in some way, whether that’s through the use of a strategic loyalty and incentive programme, or through the offer of meaningful complimentary assistance that says ‘we’re in this together’.
We can help
Whether you’re looking to restructure your operations, drive behaviour change within your organisation, or boost employee engagement, we offer the legal and HR support you need to foster a happy workplace and grow your businesses.
We’d love to talk to you. Get in touch with us a for a complimentary 15 minute call by emailing us: wendy@accordservices.co.nz