One of my current projects is to help a client turn a non-profit making company into a profitable one.  As easy as many articles make it out to be, it is NOT.

One of the most difficult challenges in any significant disruption in business is the acceptance of current management that what they have been doing, is not working.  No one wants to admit failure, however, this is an important step.  As an adviser, we can only challenge thinking and suggest a different approach.  The implementation of any strategic change relies on management.

There are many turnaround strategists that will, no doubt, agree with me in this case and as frustrating as it is for the company, it is the same for the strategist.

Most business owners and Boards of Directors are acutely aware of the downturn in the economy locally and in some cases globally.  This has and is affecting profitability and volume.  If you business has not gone through this, my feeling is it is only a matter of time.  Therefore some advice to owners and boards that are going through or thinking about going through a strategic turnaround:

• Engage with the right Adviser, someone you trust and can work with.  Someone you will listen too.  Look for someone with a network of advice.
• Accept that your current strategy is not working.
• Engage with your staff, let them know what is happening and that things are going to change.
• Surround yourself with a management team that wants to help you get your business back on track
• Accept that this is not a quick process and may take some years to achieve the desired results.
• Buy into the final strategy.
• Put in place monitoring procedures to identify early if elements of the strategy are working or not.  If not working, change them as soon as possible.
• Listen to your staff.  They are on the coal face and will tell you when things are or are not working.
• Most importantly, if you don’t see that the strategy will work, the best thing for your pocket and those of your investors may be to sell or liquidate.  This will be a tough choice as no one wants to admit failure.

Part of my daily routine is to engage in the rather frivolous exercise of watching series.  My favorites series and escapism for that matter is the super hero genre.  So my take on superheros is as follows:

• Very few superheros are born into greatness.  There is always an event that brings out the superhero, without the event they would most likely just be like the rest of us.
• Superheros are thinkers, they consider all the options before making the decision to act.
• Superheros consider the impact of their actions on others.
• Superheros make decisions for the greater good.  After all you cant please all of the people all of the time.
• In many cases the superhero is shunned for their action by the masses.
• A superhero’s greatest power is manifested during times of extreme emotion.

So what does this have to do with IQ and EQ or business for that matter?

If you want to be a superhero and a success in life and business, the principles are the same.

• You are not born an entrepreneur.  An event created the space for you to grab this opportunity.  Many people don’t recognize the even or opportunity until it has passed.  So grab the opportunities when presented.
• Always think through the possibilities before making your final decision, consider the council of advisory and team members before making the decision to act, much like superhero teams do.  Once the decision is made, act with conviction.
• Consider all your stake holders, and make the right decision for the greater good of the company and not the individual.
• Sometimes you will be shunned for your actions, especially in times of economic strife.  But remember if the company does not survive nor do the jobs.

The above are all decisions requiring high IQ.  These decisions are calculated ad well thought out.  However, as with our superhero, your greatest acts are going to be made with emotion.  Belief, hope, compassion, empathy, passion and others.

So which is a better decision maker?  I believe neither.  Both are required to make the sustainable company.  We all have both IQ and EQ, some people are stronger in one than the other and this is why having a holistic team approach is best.  Your best decisions will be made when moving towards your purpose (The “why” of your company).  Surround yourself with staff that have the same values as you and your company, and allow for them to challenge you as the owner on the “why” we are making the decision.

It has been a while since i posted on the blog, so I thought I would share some of my experiences of being a new business owner and startup.

Our company has recently employed a new staff member and is collaborating closely with a number of partners, in particular, Blue Outsourcing CC and EI Cubed (Pty) Ltd.  The business has grown in leaps and bounds over the past 2 years, wow how time flies.

So lessons for startups:

Collaboration

Collaboration is key to startups, I have realized you cant do everything yourself, so don’t.  Use your contacts and other businesses to help you grow.

Connections

It is not about what you know, it is about who you know.  your past connections can play an important role in obtaining you work and introducing you to the right people.  Spend time with like minded people in order to share experiences and help each other.

Ask for help

Don’t be afraid to ask for help.  It normally comes from people and places you least expect it.

Never stop talking about your business

Talk about your business at every opportunity, people do business with people who are passionate about theirs.

Cash Flow

Monitor your cash flow daily.  It is important to know where your business is at.  Profit is for show, cash is king.

Have a plan

Know where you want to be in the short, medium and long term.

Celebrate your wins

When things go your way, take time to appreciate and be grateful.

And when all else fails, just keep swimming 

In my roles as business owner, entrepreneur, coach, strategist, finance directors, CEO and many others, i get to attend a lot of meetings.  I often find myself asking the question, “Is this meeting really necessary?”  The answer is always, “Yes”.

So why are meetings necessary?  I am sure in the past any of you reading this have sighed at a meeting request and moaned to your relevant other as to how this person or group just waffles on and makes no progress, or thought that your time could better be spent doing the work that you have not gotten to because of attending these meetings all the time.

The alternative thought to the meeting request and why i believe that all meetings however tedious are necessary, is that someone invited you to be in a meeting as they wanted your input on some issue.  Or they value your take on the project.  Or they want your support in a proposal. etc.  There may be many reasons for a meeting and reasons that you have been invited.  It is therefore my opinion that if you have been invited to a meeting, you are wanted or needed there.

Now if you are wanted or needed, that should make you feel good? Right? So why do many of us get despondent at being invited to a meeting.  Once again it is my own opinion, that in many cases we do not see the value you we add to other people.  We are always caught up in our own cubicle, performing our own tasks that we forget that our existence in the business is to add value to the business and those around us.  If we did not add value, the business would not need us, nor would the CEO need you in that meeting and as such you would not have been invited.

However, you have been invited.  So now what?  Here are my thoughts.

1. Be excited about the meeting.  This will ensure that you prepare in advance.
2. Be on time.  This will show others that you respect their time and see their interaction with you as valuable.
3. Be present.  Always show interest in the discussion, turn off your cell phone.
4. Engage in the conversation.  Ask questions when you don’t understand.
5. Be the expert, when called upon.  Do not be afraid to state your opinion on the topic, after all that is why they included you in the meeting.
6. Always be constructive.  If you have nothing valuable to say, say nothing.

In closing, start looking forward to meetings, you never know what will come out of it if you really engage.

During December i had the privilege of visiting a Private Game Lodge in Limpopo South Africa.

Included with the package was two game drives a day, with a very knowlegable guide, Stephen. Each day Stephen would give us a wealth of information about the bush, everything from flora to fauna and bugs and birds. Really good for trivial pursuit questions in future.

On one particular game drive we got discussing the ecological managment of this particular private game reserve. This was where things got intereseting, as in terms of the natural order of things the predators are at the top of the food chain and the prey at the bottom. In order to maintain the balance, it is important that the number of prey can sustain the number of predators and that there are not too many predators to wipe out the prey completely. According to Stephen the size of the reserve is capable of sustaining a certian number of prey and predators. Maintaining this balance is the job of the ecological management team at this reserve.

This got me thinking about business. If the size of the reserve is the economy, how many businesses can the economy sustain? If the economy shrinks, as it has done over the past few years, it stands to reason that the number of businesses would need to shrink too.

In order for your business to remain in the economy when it is shrinking, you will need a survival and growth strategy.

In the reserve there are a few prides of lion, or herds of buffalo etc. In your industry there are a number of competators that compete for the same slice of the pie. Much like each herd you will need to evolve to remain in the “reserve”. Some strategies may include:
Mergers and acquisitions, technological advancement, industrialization, specialization, diversification.

How do you choose the right strategy? We at Reach Business Advisory believe that there is no one size fits all strategy, but rather suggest that you explore a multitude of strategies in order to remain in the economy. With putting all your eggs in one basket you are limiting your survival and growth to that one strategy. What if it does not work? We beilieve that businesses should explore a multitude of options and play these out over time. Test the waters so to speak. If one strategy fails, there are three or more to fall back on.

We hope you find our blog relevent and food for thought. We value feeback and comments.