Is Your Business Sustainable?
Is your business a house of cards? Could it all crumble if you or someone else even, pulled on the wrong card?
To have a sustainable, resilient business a business owner must be ready to deal with the uncertainties that may come your way. There are many factors that can contribute to turbulent times for businesses. From instability with the market, to customers, competitors, or global, health & nature factors; these can all individually affect your capability in running your business. Also, if you combine a few, could it be the end? However, with the right effective business model and plan, you can anticipate and deal with these problems and navigate through a turbulent time.
Below we discuss some key business model features that can reinforce the sustainability and resilience of your business and assist in helping you mitigate risks that could appear on the horizon.
1 - Business Plans ;Your business model needs a business plan! One of the key pillars in business; this should incorporate items such as your Competitive Marketplace Positioning, your Financial Summary, your Research Analysis, and your Goals. It should be a fluid document that allows you to always refresh your answers for questions such as, what are the goals for this business and how is the business progressing. We even advocate here at Helix Planning that a business plan is really your business mindset. A business plan allows you to track and create the data to analyse your business and keeps you on the right road, heading in the right direction. For more on business plans, please see our previous blog - What is a Business Plan.
2 ;Have a business model that is resilient against societal and environmental changes - Consumer needs and wants change, supply chain pressures can arise due to environmental impacts, and new regulations can be implemented. Ensure your business has reduced or managed the risks that can arise and materialise from these changing, fluid factors.
3. Grow your business effectively ;Ensure you are increasing without additional risks or dwindling returns. Your business model should allow your business to grow without reducing profitability and value. (This happens naturally when you plan for it, see point 1)
4 - Loans ;Make it your business to know what loans are out there to help protect and grow your business in times of short financial crisis or cashflow issues. In fact, getting them in place before you even need them is much easier than when you do! Loans like line of credits or overdrafts can help assist businesses during time of unpredictability ;For assistance with what could work well for your business, reach out to SFE LOANS.
5 - Communicate and Network – Have the engagement and connection with your employees, customers, community, and stakeholders and create a network within your industry. This allows for the ability to always have an idea of what employees; customers and the community want and need whilst also creating a web of like minds within your industry for new projects and concepts.
6 - Continually review and re-establish your purpose ;This ties in with having a business plan. Don't lose focus on why you started your business and your goals. Reviewing and having a strong business plan helps not only to embody your company's purpose but promotes growth and the ability to adapt and change as your customers, competitors and climate does. It gives your business the compass to always move in the right direction.
The core factor of your business should be ensuring the survivability of it in the long run. Rather than waiting for something to happen and being mid crisis, implement features and prepare tools and know your options and game plan for if that card falls from your house. This is what will assist your business in sustainability and be able to whether any storm.
If you feel you need ideas or guidance on how to ensure your business is sustainable long term, get it touch with us today at Helix Plan.