These are uncertain times, exacerbated by the one-two punch of COVID with the threats and realities of war. The current challenges that businesses in New Zealand are facing include supply chain issues, high inflation and problems with procuring suitable staff. With the risk of rising interest rates and tighter monetary conditions, businesses must find ways to cut costs to make up for weaker sales growth. To offset higher costs, businesses also need to balance raising their own prices with maintaining competitiveness in the market.
Effective businesses management requires the ability to develop creative solutions in order to take advantage of new opportunities, while maintaining the flexibility to adapt to ongoing changes in the market.
For many business owners, their business represents the culmination of their life’s work and primary source of wealth. Regardless of your motivation, the sale process can prove to be complex, with considerations including the right time to sell, whether or not to employ advisors, which business valuation method to use, and how to maximise the valuation.
When looking to find a solution that will grow sales you must be careful to solve the right problem. Simply increasing the number of customers may cause problems in capability and capacity. Phil identifies an example which helps to explain this concept.
Succession planning for business continuity usually starts with identifying when you will pass your business on and to who. If you are approaching retirement or taking a step back from your role then its worthwhile getting a strategy in place, for handing your business over to its new owners.
