Winter is coming… are you prepared?
Embedded Files
It is all over the headlines, you can't avoid the subject.
“Jeff Bezos warns of looming US recession: 'Batten down the hatches'” read the New York Post the other day.
So is it coming? And do you have a game plan?
We have seen these headlines for months now. I am sure it worries you and every entrepreneur and human being you know, that is trying to make a living.
In reality, recessions are inevitable and it is part and parcel of being an entrepreneur. To quote Gino Wickman’s mentor Sam Cupp “In every 10-year business cycle we have to remember there are two great years, six good years and two years that can put you out of business! We want you to be prepared for those two bad years.”
As Gino Wickman says in his book E-Leap, a true entrepreneur must have a high tolerance for risk and volatility and economic downturns test your tolerance levels. You must have superior problem solving skills, a vision for your business, be passionate about what you do so you can ride the tide. And most importantly take extreme ownership and be highly responsible for the good, bad and ugly of your business.
So do you have what it takes to be a true entrepreneur in volatile times?
Now lets discuss a game plan.
There is no better time than now to get “Lean and Mean”. Recession or not, its wise to have a backup plan for whenever those “two years that can put you out of business” come around.
No one says it better than Gino Wickman himself “That means you have to be obsessive about business fundamentals—know what you want, have a clear vision and plan, prioritize well, meet often, measure and hold yourselves accountable, lean in, solve problems fast, and work harder than ever. You’ve got to be better than ever.”
It's time to go back to basics. Do you have a vision for your business? Is your organization aligned around the vision so everyone can make swift, effective decisions when time is of essence?
Now is a great time to analyze your people and see, if you need to trim down your business by 10-50%, who are your key players? Who REALLY Gets it, Wants it and has the Capacity to do their job and take your business over the hump?
Use the “Reverse Accountability Chart”. (read about it in detail here). That's right! Instead of planning how to scale, plan how staying lean would look like. If your revenue drops, what would the structure of your company look like?
take a look at your product and/or service offerings. What are your cash flow drivers? If you need to cut a product or service, which one would it be? How can you increase revenue and reserve cash?
Finally, I urge you to read this blog post by Gino Wickman when COVID-19 hit, on how to prepare for an economic downturn.
As always, I am here to help.
Rachel
Learn more about me and the work I do here https://www.eosworldwide.com/rachel-lebowitz
If you enjoyed this Business Journal, Subscribe here to get future journals in your inbox!
Page updated
Report abuse