Following positive signs of an economic recovery, business owners may be tempted to reclaim the sacrifices they made during the downturn.
Former CEO of retail icons BiLo, Radio Rentals and Chair of The Executive Connection (TEC) Brendan Killen, urges businesses to resist the temptation to recoup lost expenses in order to stay strong during the upturn.
While most businesses took radical steps to ensure they survived the GFC, Mr Killen said TEC members identified ways of surviving the downturn such as maintaining good cash flow, ensuring staff satisfaction and increasing all marketing and business development activities.
“CEO’s and business owners who are part of TEC were better prepared for the downtown and sustained little financial damage, having strategically managed cost expenses throughout the GFC,” he said.
Mr Killen said business leaders should adopt the same approach as they implement business plans for 2010.
“Our members are now managing the good times as if they were still in bad times. Other business leaders should retain or “quarantine” all the good moves they made during the GFC to create a more successful future during the economic upturn.
“During the downturn debt was significantly reduced or restructured; cash flow regained its position as ‘king’; staff were engaged in a process to help identify and remove unnecessary expenses; renewed energy was injected into bolstering sales ‘pipelines’; the focus changed from what would be nice to have to a singular emphasis on what was absolutely necessary,” he said.
“Now, with steadily improving business conditions, there is a huge risk that business owners will want to relieve themselves of the sacrifices they endured during the GFC and get fat again in expense terms.” Mr Killen said
If you are a business leader or Chief Executive who would like the opportunity to learn how to bulletproof your business against economic events such as the GFC by participating in a TEC group, visit www.tec.com.au or contact 1300 721 941.
