Your Number One Focus During A Market Downturn
During a crisis there can be a temptation to split your focus and try and do everything you possibly can to steer the ship out of troubled waters. However, this can be a costly mistake as in actual fact, during a crisis - you need to simplify everything and focus only on mission critical activities.
And your number one mission critical focus - is cash.
During a crisis and market downturn - you literally need to be obsessed with your cash flow. You need to be focusing all of your efforts on how you get more cash through your doors. The more cash you have - the more options you have. The less cash you have..... well you're in trouble.
People can easily get distracted focusing on any number of bright and shiny temptations - but in reality you need to simplify things and focus on dollars coming in vs. dollars going out. You need to be making sure that you're doing everything you can to increase dollars coming in and turning off every and all leaky taps that are bleeding unnecessary cash out of your front door.
The three areas that will yield more cash coming are:
- Winning more work
- Variations & additional works packages
- Getting better at collecting the money people already owe you
Now for some leaders and business owners, this will put you outside of your comfort zone as you will be asked to do things you don't like doing.
For example: I was speaking with an engineering team leader about their cashflow and there was a legitimate $15k variation sitting on the table for some work they had been asked to do for a client. They were about to start the works but hadn't raised it with their client as a variation as they were concerned their client would get funny about it as they were known for getting aggressive when it came to money discussions.
I pointed out to this team leader that this $15k variation was actually someone’s salary for 3 months and by avoiding and putting off having a difficult conversation with their client over a legitimate variation they were actually sabotaging their team, their cashflow and potentially someone’s job.
Sometimes, all it takes is for things to be put into perspective as this team leader immediately responded with - "When you put it like that - I'll definitely be raising this as a variation with the client tomorrow".
During a market downturn - cash is king. Do everything you possibly can to protect your cash position and your cashflow to future proof your team and your business.
Josh 'Cash Is King' Stone
PS: If you’re interested, here are 4 ways I can help you right now:
- Join the Leaders In Engineering community designed specifically for engineering leaders and business owners
It’s our new Facebook community where engineering leaders and business owners are learning the strategies and leadership skills to step up and thrive right now – Click Here to join
- Book in a 15min Strategy Session
I have opened up spots on my calendar which are designed as a check in and for us to work out a plan together on how you can tackle a volatile marketplace, a slowing workload and gain visibility on the issues, challenges and problems you are facing at the moment. If you’d like us to work on a plan together – Click Here
- Join my weekly program – Ignite Inner Circle
Join my Inner Circle weekly online program where together we will work on implementing the mission critical strategies required to future proof your team and your business and ensure that you don't just survive - but thrive! – Click Here for more details
- Have me work with you and your team privately
If you’re serious about getting real results and you’d like me to work directly with you and your team… just send me an email at [email protected] and put “Private” in the subject line...tell me a little about yourself, the challenges you are facing and what you’d like to work on together, and I’ll be in touch to discuss a plan!
