The rising cost of living and the mental health problems associated with economic vulnerability and negative economic shocks of the last few years have made feelings of anxiety and uncertainty common for business owners and employees alike.
It has been a source of unexpected stress and adversity for many people. Business owners will focus on the negatives in the profitability and sustainability of their business. Even worse, they contemplate the possibility of insolvent trading and the voluntary administration or winding up of their business and the potentially negative impact on their personal assets.
Resilience is the ability to absorb stress and can help us get through and overcome hardship. Resilience is not something we are born with, it is a journey and is built up over time as the experiences we have, interacts with our unique, individual genetic make-up. That is why we all respond to stress and adversity differently.
Marcus Buckingham of the Strengths Revolution believes that personal strength and resilience can give you that competitive edge. Marcus developed a list of resilience factors to identify particular strengths and level of resilience of your staff, your team leaders and your senior leaders.
- I have all the freedom I need to decide how to get my work done
- No matter what else is going on around me, I can stay focussed on getting my work done
- In the last week, I have felt excited to work every day
- I always believe that things are going to work out for the best
- My team leader tells me what I need to know before I need to know it
- I trust my team leader
- I am encouraged to take risks
- Senior leaders are one step ahead of events
- Senior leaders always do what they say they are going to do
- I completely trust my company’s senior leaders
So what can you do to build up and strengthen resilience?
Use the rule of three’s – three points and three action items!
- Unload the negative side:
Reducing the sources of stress will lighten the load:
- Understand your future work pipeline
- Understand your cash flow
- Understand your liabilities and when they need to be paid
- Load up the positive side:
- prepare your client work project plan for every client
- develop a 13-week cash flow projection to understand your cash position
- ensure your Balance Sheet is up to date
- Strengthen relationships:
Increasing the level of internal and external engagement will maximise positivity.
- maintain and encourage communication with your clients
- maintain and encourage communication with your staff
- maintain and encourage communication with your suppliers/creditors
All of us need a level of self-regulation and executive function to manage daily business life. Planning and checklists are key to becoming efficient and identifying areas of weakness to address.
The slowdown of economic activity caused by the COVID pandemic has led to severe difficulties for business owners to meet their ongoing obligations. Many fixed costs remain due while cash flow to meet those obligations vanished for a period but has returned to a level.
Many otherwise sound businesses are facing acute liquidity constraints that may become insolvency problems such as trading while insolvent resulting in a voluntary administration or voluntary liquidation or directors’ penalty notices and/or garnishee notices from the Tax Office.
Get help to push through and deal with these issues with a way forward debt solutions and/or compromises such as cash flow lending, Small Business Debt Restructuring protection, Safe Harbour protection or simply informal debt negotiation with creditors.
Get help today
Climb Business acts for you and provides independent advice and will act for you rather than liquidators who will act for creditors.
Start with a no-obligation chat with a financial councillor about where your business sits right now and how to formulate cash flow and debt solution strategies.