Get your business in shape for the year ahead

Avine McNally of the Small Firms Association and Peter Byrne, South Dublin Chambers, share their top 5 tips for businesses

The New Year is traditionally a time of resolutions and making changes. Following the challenging 2010, many companies may think that the worst is over and that they can revert to business as usual. But the smarter business owner will know that the business landscape has changed. We asked Avine McNally, Acting Director of the Small Firms Association and Peter Byrne, CEO South Dublin Chambers to share with our customers their top5 tips for businesses to get in shape and adapt for the year ahead.

Tip 1: Get support from business organisations / networking groups
For many firms, times are tough, and owners/managers are sure to be feeling stressed, isolated and even scared, according to Peter Byrne, CEO of the South Dublin Chamber. He advised business owners and managers to join organisations like the Chambers, IBEC, ISME, the SFA, or local networking groups. “It’s alright to feel scared and stressed, but business owners should know that they’re not alone,” Peter says. “In joining business groups and attending seminars or network meetings you will be able to learn from other business’ experiences, and crucially, you will also hear success stories or advice from businesses who have been through what you’re now going through, and come out the other side.” Business and networking groups are also an excellent way to develop new contacts, form relationships with new suppliers, and even develop new sales leads.

Tip 2: Tighten up your credit management policy
For 98% of Small Firms Association (SFA) members, late payment is a huge problem; the average waiting time for payment rose to 77 days in 2010. Forming a strong culture and ethos towards credit management is vital, according to Avine McNally, Acting Director of the SFA: “It’s never too late to tighten your credit management policy,” she says. “Make it everybody’s job to keep on top of chasing payments. Keep your regime tight and make sure to monitor your policy on an ongoing basis.” Check credit worthiness of new customers and consider asking for a percentage of payment up front or implementing phased payments. “Late payments become a self-perpetuating problem; if a company is late in receiving payments, they in turn will be late paying their suppliers, and so on. This then has a detrimental effect on business confidence,” concludes Avine.

Tip 3: Be creative with staff motivation
Staff redundancies and salary reductions were commonplace during the past two years. As we face continuing hardship in 2011, Peter Byrne says companies should find ways to motivate staff so they work hard for the business. Most companies won’t be in a position to offer salary increases, but Peter suggests offering intrinsic rewards that make the job more enjoyable, like working from home or working flexible hours. Encourage staff to be more involved in the running of your business or offer to train them in new areas to enhance job satisfaction.

Tip 4: Collaborate to get ahead
Being open to new ideas and ways of doing business will be critical this year, Peter says. Many firms have become more open to collaboration with companies that offer complimentary products or services. “By linking up with other firms you can compete more effectively in a crowded marketplace, or even expand into other markets,” says Peter. Firms working together have the ability to offer a one-stop-shop solution to customers, a tactic that will allow them to add value to their business proposition, which in turn could open you up to a whole new customer base. “Collaboration can open up great new opportunities for businesses,” concludes Peter. “Businesses have to adapt in 2011, it’s as simple as that.”

Tip 5: Listen to your customers
“Cherish your loyal customers”, Peter advises. He recommends going beyond special offers or loyalty schemes, and really start engaging with and listening to customers. “Find out what they want from you and show them that you value their business.” Social media tools like Twitter or Facebook make it easier than ever to connect with your customers, but if these tools seem like they’ll be too time-consuming for you, regular catch-up emails or courtesy phone calls can be just as effective. The important thing is to really think about your customers’ needs, says Peter, whether that is delivering special offers, being more accessible, providing the convenience of a web store, or simply keeping in touch with them: they will value the attention and reward you with their continuing business.

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