The share market as of late is starting to resemble a child’s see-saw more than a well-oiled machine, and that has investors and shareholders nervously monitoring performance. Will stocks climb or tumble? What will the Reserve Bank do? Will the Aussie dollar sink or soar? And as the end of the year approaches, retailers are anxiously speculating whether holiday sales will be a season knock out or an un-festive flop.

However, for small business operators it’s pretty much business as usual regardless of the ups and downs of the market or the whims and sentiments of investors. Of course, the economy’s performance will have SMEs revising their business plans and forecasts. Those that were expecting a strong year of growth may especially be questioning their projections to reflect on uncertain times.

While you may be thinking you have to scrap your plans for growth and just ride out the storm, small companies can transcend the market trends by making smart decisions about how they grow.

• Consider your business plan – revisit your growth plan and make the necessary changes to incorporate the new reality. If you recognise that some decisions need to be made, develop an immediate and decisive plan of action to redirect your business trajectory in a positive direction.
• Manage your cash flow – it’ll be especially critical to keep a careful eye on your cash flow and spending. Creditors across the board will be tightening their payment terms to keep their own cash flowing, which means you’ll need to set budgets accordingly.
• Concentrate on retention–it will generally cost a business much more to win a new customer than retain an old one. Focus on retention and the areas of your business you can control independent of economic factors. For example, businesses can concentrate on delivering great customer service and value rather than competing on price.
• Look for and seize immediate growth opportunities – being innovative and strategic about quick wins will help small businesses grow in challenging times. Look for opportunities to expand and diversify your revenue stream. Find opportunities to expand your offering for a more robust client base that may be less affected by the current economic challenges.

Operators need to stay positive and optimistic while balancing this mindset with a shrewd business sense. By staying focused on long term goals, you’ll be able to strategically position your business in trying times.

How do you plan to grow your business during uncertain times? What sectors do you think remain strong?

Robbo
robbo@flexigroup.com.au