2020 has taught us that we can’t always be prepared for the worst-case scenario. But as a leader, adapting to change is an essential part of positioning your business to recover – and even thrive – in fundamentally altered circumstances.
In this article, we’ll share our tips for successfully leading your business in adapting to change.
Know Your Numbers
In the face of any significant change, it’s important to have a clear view of your business finances. If you, like many business owners, are not confident reviewing financial reports, talk them through with someone who is. It’s important that you understand the full implications of cash flow and tax obligations on any current and future changes you may be facing in the business. Understanding the numbers in context of your particular business will provide the financial confidence you need for making fast or timely decisions as opportunities arise or circumstances change.
As a leader, you can’t always be across every transaction that goes on. The important thing is to have access to good advice when you need it and workable systems to keep you informed. This will help you maintain confidence in the face of uncertainty.
Decisions x Actions = Results
It’s a well-worn formula here at Core that we often share with our clients: Decisions, multiplied by actions, equals results.
Good decision-making by the business leader is what sets the wheels in motion so that the rest of the team can get to work, taking action across the business that will create tangible results. And good decision-making is almost always precipitated by good advice.
We encourage our clients to be proactive, take a conscious and structured approach to managing business and personal affairs, and to strive to continually improve them.
During challenging times, it’s important to embrace fluidity. Check in with your team regularly and find out if your strategies are working. If something’s not, is there anything else that might?
Perhaps your team members are struggling with working from home. Could you arrange a temporary workspace or alternate between working from home or being on site? Would they benefit from adjusted work hours? Being flexible and open to ideas while you’re adapting to change shows that you’re committed to finding the right solutions for you, your team and your business.
Assess the Changes
We’ve all made changes to the way we do business over the past year. Now is a good time to step back and assess those changes and decide whether they should be permanent or if it’s time for things to go back to how they were before.
Working from home became the new normal during COVID, and while some welcomed the arrangements, for others they presented serious challenges on many fronts. If a temporary change has netted better results for your business – there’s no reason it can’t be a permanent change. Or perhaps a dialled-back version of the changes will be what works best for the team in the long term.
Resilience in business is about acknowledging that unexpected and negative events happen, and we can’t always be prepared. But we can develop our capacity to absorb stress, recover functionality and thrive in adverse conditions.
Even before COVID, we’ve seen a rise in discussion about resilience. We teach it to our children, we praise it in the workplace, and we expect it from our service providers. By encouraging resilience, we take on responsibility for accepting the changes that come our way and finding useful ways to adapt or recover.
There is always room for improvement, but it’s not always clear where and how we need to make changes. As we learn to adapt to change in our businesses, it’s important to consider new ways to improve. Keeping an open mind helps us recognise where the potential for improvements lie and enables a willingness and freedom to discard old methods when they no longer serve you.
Core Business Accountants specialise in business advice for growing and mature family-owned and small and medium-sized businesses. If you need business advice about any of the above topics, please get in touch with us on 5438 8088 or email firstname.lastname@example.org or visit www.corebusiness.com.au.