As business leaders look at their 2023 goals and objectives, external economic pressures will continue from all directions. This has many leaders worried that as banks tighten their credit standards, the supply chain is reeling.Inflation has deteriorated, commodity prices have risen and inflation has continued to rise. With continued equity market volatility, recruiting and retaining talented employees, regardless of your industry, is also a concern.
When we feel uncertain, the risk of making rash or careless decisions increases. As such, it’s more important than ever to understand these external influences, how they affect your unique operations, and how you can work to adapt in 2023. Business leaders need to know how to increase cash flow, increase profitability and create positive change with employees going into the next year.
Be alert
I recently prepared an article on a few In times of uncertainty, business leaders can ask themselves to stay proactive.. Because we external pr. We can’t control itIt proves that we have to double down on what we can control, namely how we both prepare for and respond to them. In one situation with a family business client, they talked about how they refocused and refocused their efforts in hour-long weekly management meetings with the goal of solving some of the challenges mentioned above. With these mandatory weekly meetings, they have increased accountability and actionable goals. Weekly meetings, when done carefully, keep people sharp and focused. Who wants to be unprepared knowingly?
By creating a standard cadence, they were able to maintain high concentration and ensure that nothing went more than a week without a solution. For example, when the cost of shipping their product to certain regions increased domestically and increased tenfold overseas, they were able to proactively collaborate and make real-time decisions about when to ship. By focusing on communication and creating a consistent open platform, they have found success in times of uncertainty and challenges.
Go ahead with employee exams
Whether for a small family office or a large multinational corporation, employee retention and recruitment will continue to be an issue for both skilled and unskilled positions. For both aspects, one of the root causes may come from an ever-increasing incompatibility with relationships and roles and expectations.
If you want to be truly proactive in solving employee problems, start by talking to your team members and stakeholders. You won’t get it.Know or understand if there is a problem unless someone says it. Once you become aware of an existing issue, you can take steps to fix it. Otherwise, you will be left guessing addresses or notSing the correct problem. There is no substitute for honesty and sincerity, and that is often forgotten. We are all smarter than we are given credit for. If you don’t communicate, you risk people creating their own interpretations rather than providing an informed basis.
Leaders need to do a better job of understanding what is needed for the success of their team members. Let your employees know if they are doing a good job. Thanking them, letting them know you appreciate their great effort, or even buying them a nice dinner, as a token of appreciation goes a long way.
Understanding the impact of inflation on your business
You VYou may have heard hundreds of different views or opinions about inflation. This can leave many at a loss when looking for a reliable source when both the macro scale and inflation affect their own business. Use your resources to find an excellent source of facts. Be careful, because many experts, especially those without expertise in social media, will give different opinions.
When it comes to preparing for inflation and how it affects your company, be careful, be careful Smart and approach things with the right amount of skepticism. Take time to digest the information before making a decision. People want quick answers. But how many decisions are really time-sensitive? Consider the impact of your decisions on others. Retaining good people is a challenge and being able to do so has an immeasurable positive impact.
Dealing with rising interest rates
Who would have thought that a 6% or 7% increase in interest rates would count? While they may create some uncertainty for business leaders, don’t let them distract you from what’s most important. It may be cliché, but It’s basically about maintaining the very best fundamentals; generate Profits, serving customers, communicating with strategic partners and stakeholders and so on. If a 2% or 3% increase in interest rates makes that much of a difference, there could be problems with activity long before interest rates rise.
Consider the impact on customers, products and suppliers
While rising interest rates may affect your operations, consider the positive and negative implications for your customers, products and suppliers. It returns to focus: rationalizing costs, eliminating unprofitable customers and products, reducing inefficiencies and strengthening relationships. The 80/20 rule is alive and well. Focusing on those key numbers will impact your success.
happy new year
As we prepare for the new year, it’s easy to feel uncertain or anxious about what lies ahead (or may). As business leaders, take a step back, assess the externalities you face, and best of all Set your business up for success in the new year.
