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Leading Businesses Through Challenging Times
By: Gary Colbert, Managing Partner - Tampa
Everyone in the business world is experiencing market difficulties that none of us have ever seen before, and all of us hope we never see again. Economic growth has stagnated, government debt levels are skyrocketing, unemployment levels show no sign of improvement and financing opportunities are few and far between. With all of the gloom and doom, how is it possible to successfully navigate a company through such dire circumstances?
While there are many forms of advice from all sorts of "experts", the simple truth is that there's no easy answer. There are many factors that can spell success or failure for any business, and such factors become far more pronounced in a severe economic downturn. What works for one company may not work for another, which leads us to today's topic: Crisis Management.
Much like the difference in a layman's definition of a 'recession' (when your neighbor loses her job) versus a 'depression' (when you lose your job), an economic slowdown may cause difficulties for your competitors that become a crisis when they affect your business. Although many people have faced economic downturns before, most people do not understand how to navigate their companies through difficult times. The stress and strain of dealing with declining cash flow tends to rob business leaders of one of their most valuable skills: Objectivity. Consequently, poor decisions get made that further exacerbate an already difficult situation.
Timing is everything, and in a crisis situation, time is of the essence. Securing the services of good business advisors is often the difference between success and failure, and at no time is it more evident than when a crisis looms. Effective crisis management will often allow an enterprise to succeed where others have failed. A case in point is a recent client of Nperspective, a fifth-generation family-owned company that survived the Great Depression but nearly disappeared from its industry within the last year. The company was not prepared to weather the economic storm that it encountered, but a catastrophe for the company's owners was averted through effective crisis management that revolved around swift and decisive actions concerning its banking relationships, vendor relationships, sales terms, cost structure and cash management.
The key to surviving such a crisis is making a timely decision to secure professional advisors that will instill confidence in key stakeholders, which include the company's investors, lenders, suppliers and employees. All of these constituents have a significant role in the success or failure of a business in crisis mode, and the retention of professionals who can effectively negotiate with these parties and instill confidence in them will often be the single most significant difference between success and failure.
Nperspective's team has a proven track record of leading businesses through challenging times. Contact us for a free consultation to discuss if there are ways we can help your company succeed where others have failed.
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