Economic Downturn Or Growth Opportunity?
Change is very much a part of life and whether it is a positive or negative, one thing is certain, change will occur. How you deal with it is up to you and that is one thing you can control. Sometimes you can predict future change, sometimes it is unexpected but the important thing to remember is that change does not need to be about doom and gloom, it can be an opportunity to exploit and expand your business.
There has been a huge amount of publicity in recent times debating whether we are currently in a recession or just nose diving toward one, but either way none of it is too positive. The terms ‘recession’ and ‘economic downturn’ are words that have been appearing regularly and for business owners, this can trigger all sorts of emotions and knee jerk reactions. The reality is that the cycle of business is rarely static and is constantly revolving. Watching and working with the ebbs and flows of trends in the economy is the key to maximising business opportunities.
The budget produced a few small upsides for business. The reduction in company tax rates and the changes to some compliance costs provide a small measure of relief – both financially and in terms of time and energy. It might be timely to move your business into a better position to leverage off the upcoming expanded broadband network or the updated rail system. Maybe you can cash in on the proposed increased government spending on lifting New Zealand’s overseas profile. If you’re an exporter it surely can’t hurt, at least. What are the positives for you?
If confronted with a tougher market, adapt, it may be time to consolidate your business, cut back on waste, focus on your best options, on quality and on taking extra good care of your customer base. Identify areas where you may have become complacent and excessive, review your expenses over the past few years and identify areas where any cut backs can be made. In a period of economic downturn, usually the lower and middle income earners are most affected. The more affluent continue their spending on quality, high end products and services unabated. If possible, cut back on product volume and concentrate on quality products that carry a higher margin. Avoid complacency and remember to take care of your customers, giving them even more reason to stay with you. If your competitors fall, be there to make sure you pick up their customer base.
Talk of economic downturn is usually hyped up. Don’t believe all the headlines, stay confident and refuse to subscribe to the downturn school of thought. Take stock of your business, look for the opportunities, analyse the threats and get your business in shape now to ride out any hard yards ensuring you’re better prepared than the competition. Whether you pop-up smelling of roses and even prosper in the downturn is all up to you.
For more information visit Business for Sale specialists www.nzbizbuysell.co.nz