Managing Change
Business today means constantly rethinking what we do and how we position ourselves as the market changes.
Experience shows that businesses need to re-invent themselves at least every 3 or 4 years and in some markets its necessary to be constantly inventing new products and routes to market – and the messages that go with this. If you miss the next wave you may be out of business.
Managing change means not only keeping your eye on where the next wave is coming from but also keeping your team together and finding profitable enough work to keep them employed. This means that you may need to change the subject matter of the business.
It may mean behaving differently. Companies often find it difficult to grow organically. They often get stuck and can't grow past a certain point. 10 employees is a very common barrier. To get past this you may have to change your management processses and bring some more senior people on board. This can be quite difficult for your team
Small businesses are a reflection of the owner's values and personality. To manage change you need to have a clear vision of where you want to go and develop a story that connects you to your market and that resonates with both your team and the customers
Based on 20 years experience of running small businesses and dealing with these periodic changes we have put together a practical one day workshop to help you 'Refocus your Business' in line with your market.'Refocus your Business' helps you work out where you are and what to do next. It will help you write the story you want to tell in the right language to inspire your customers. Implementing change is not easy. Don't underestimate the challenge.
We are talking about leading a significant change management programme here. There is no magic bullet. What we deliver is a logical framework that combines marketing and psychological ideas to deliver the results you need. Don't leave it too late.
As the drawing below illustrates without change and reinvention your business will eventually stagnate. Sales will leak away while overheads will become harder to cover, any attempt to do more of the same harder will fail to deliver the results you need. Only radical change can get you back on track.
If this is already happening to you, you will recognise the defined emotional roller-coaster of shock, denial, anger, bargaining and sadness which leads to an acceptance of the new situation. Acceptance leads to the recovery trough and from here we can get you back on track.
A small business, perhaps even more so than any other, is dependent on its people and its people's decisions.
The recovery trough is categorised by a series of emotional milestones-from naïve enthusiasm through rude awakening to the reality of getting the business successfully on track with the new idea. While the diagram implies that the processes happen sequentially, in practice they're often simultaneous.
Understanding the emotional process allows you to effectively manage change and refocus your business. Click here for more information on our workshops or explore our free downloads using the right hand menu.
The business of managing change also relates to finance. While in most cases the barriers are more about the owner-manager overcoming the emotional resistances to growth and the changes it brings than the availability of finance in itself, it's nevertheless useful to have some idea of what the landscape looks like. The key issues are summarised in the following diagram
In the growth stage which is all about proof of concept you will likely depend on friends family and fools for your finances topped up by bank and government grant finances in the later stages.
When the business is developing you will need funding from a business angel who will help you get the business established as a serious player.
Only when you are looking to go global should you look for Venture Capital funding. They are interested in what your unfair advantage is , who your team is and how quickly they can get their money back. They're not interested in what the business is - only in its cash dynamics. And they will have a minimum amount to invest - not a maximum like a bank or angel.
If you need help with any of the above, consider booking on our refocus your business workshop. our business growth learning set or download some of the free white papers about business growth listed on the right