Time
Often the biggest issue for a business is that it runs out of time to handle a specific situation. So whilst there may be a solution and approach if there is a lack of time it may not be able to survive long enough to implement the solution. So it is essential that you have the correct things in place to create enough time and space for this. One of the key things here will be cash. Lack of Cash and reserves will directly reduce the time available to be able to adapt and change course. Personally, in my business, I like to build up sufficient cash reserves to be able to operate the business for at least 12 months with minimal or no income. Whilst this is unlikely to happen I know that we will have the time and space to adapt.
So what can assist you in creating more time?
- Awareness of an issue
As with most issues the earlier you know that something is going astray the more likely you will be able to adapt to get this handled. I now find it easier in business to see the signals when things need shaking up in any area – was not always the case. Experience and good processes provide the framework here.
The analogy that I like to use is the Tsunami.
They have developed forward warning systems for this type of event which is aimed at providing as much notice so that plans can be enacted and evacuation can take place. This is not too different from business. Often there is a Tsunami brewing and building up just no one is aware of it. When it becomes obvious is when it is just about to break onto the shore. Here there is no doubt something devastating is about to take place.
The problem here is that at this point in time any action taken is totally futile. There is nothing that can stop the damage that is about to unfold. This is the same with business – sometimes it may be just too late.
So what can assist here is firstly a good warning system. Having these in place will also act as your early warning system. This warning system can come in form of KPIs and clear key metrics about the business. As I always say, these need to be updated weekly in order to enable enough warning and time to adapt. Plus time to learn what signs to look for when small crises take place which they inevitably will in business.
Data is your warning system. Use it wisely.