What would you do differently?

I’ve been asked this question quite a bit over the years.

Given we’re in a time of great uncertainty, fear and tanking stock markets I thought it would be a good time to explore this.

It also might be somewhat useful for anyone under the age of 40 because if they live in Australia they’ve never seen/lived through, managed a business through a recession.

And, we might not have one, but that’s looking increasingly unlikely and, quite frankly, we’re way overdue.

30 years and three, almost four, businesses

Over the past 30 years I’ve founded/co-founded four businesses all in the book publishing and book writing space.

One operated for 24 years and started in the immediate aftermath of the 1987 stock market crash. The death of my business partner combined with the GFC and rapid change in publishing resulted in the demise of that business in 2009…sort of.

The second (specialist business history writing) has now operated for nine years and started post the GFC.

The third is a specialist business book coaching business and that’s been operating for four years.

The fourth is in its early stages . . . watch this space.

Clearly they’re all in the same area, business books, but they couldn’t be more different types of business and they needed to be as business publishing has changed radically over the past 30 years.

So what have I learnt from the highs and lows of business, of booms and busts, changing business models and ways to market?

1. Know what numbers matter and monitor them.

I’d work out what numbers mattered and not focus on winning work/projects.

I was revenue focused not profit/margin focused…I thought ‘others’ were doing this.

WRONG.

I focused on the wrong numbers.

Why did I do that? Because I’d never set up and run a business before. I had a business partner who had (very successfully) so I thought he’d look at those numbers, the ones I didn’t really think about.

After a while, several years when I knew what numbers I should look at, I didn’t. I kept on shifting ‘those numbers’ to my business partner.

Then he died. As a director I needed to get into the numbers FAST, understand the numbers, and they weren’t pretty. Then the GFC happened…that outlier event just like COVID-19. The outlier event that’s not an outlier.

I wasn’t across my numbers…although I was trying super hard to get up to speed. But it was too late, too pressured, too everything.

Depending on the business you are in there’ll be different numbers/metrics that you need to monitor.

All business owners need to know their revenue, margin, profitability, cash flow, overhead (key in the door money I call it – what it costs you every week just to be open) to name a few.

On top of these (or other numbers) you need to be across your wages/salaries and on-costs – superannuation, holiday pay, sick pay, leave loadings, weekend loadings. You only have to look at the train wreck that is George Calombaris and underpayments by other restaurants and some of Australia’s largest companies to see the implications (liability) you could be up for if you get this wrong or worse still think it’s your accountant’s job. That excuse didn’t work for George and it won’t work for you.

Right now? Focus on your cashflow. Make sure your outstanding invoices are paid, that you minimise out-goings, communicate with your clients, staff, bank....more than you think you need to.

2. Recognise that you can’t ‘do it all’, that you need highly capable, skilled people with you who have as much energy as you do so you are not carrying the business.

I thought I was Super Businesswoman, Superwoman, Super Mother, Super Everything.

I’ve gotta love that Super Person as she propelled me to opportunities and experiences that I wouldn’t change at all.

It’s just that when the shit hits the fan superpowers don’t work.

No amount of hard work, long hours, doing everything that I could possibly do was going to be enough. I thought that it would, that I could. I was wrong. I even forgot to feed the dog.

In fact my Superpower attitude meant I didn’t allow others to show theirs and, potentially, create a better, more sustainable and more resilient business.

As I’ve said earlier, I’ve learnt a lot…

3. Change the model of your business.

Move from employer/employee to a skin in the game/collaborative model IF you can.

This is not to say everyone has to have skin in the game, but create a cohort of partners, even if it’s just one other person, that comes on your business journey with you. 

If you think starting a business is hard, try being ‘the one’ as your business grows year after year, decade after decade. 

Learn to be a leader if you’re not naturally that way.

4. Hope is not an action plan

This is related to point 1, knowing what numbers matter, and I can tell you now while many SME’s focus on cash flow – and that’s a real pinch point – it’s profitability that will define your business longevity and success. 

And, when you see your key numbers going south ACT EARLY. The longer you wait for ‘something to happen’ the worse it will get. 

And, we're in uncharted times now so act early, without panicking.

Are these decisions and times hard? You bet. Will they get worse if you don’t do something about it now? YES…much worse. 

If you look at your numbers and see trends don’t hope it’ll get better, act early to change and/or mitigate where you can. 

5. Ask for help early 

As someone who was always the person others asked for help from it was not only a rude shock for me to realise that I needed help but incredibly difficult for me to even get the words ‘I need your help’ out of my mouth. 

I learnt the hard way . . . and while the outcome may have been the same it would have been way less stressful, my son would not have had to grab so many pizzas as I was overwhelmed with trying to hang it all together and my dog would not have had to share my son’s pizza on occasions….and I thought I was managing well at that point. 

‘Doona days’ were not an option but neither was the increasing frequency of the tell-tale 3:34 am wake up and then not being able to get back to sleep due to the stress and pressure. 

The dog, my son and I survived…if I’d asked for help earlier the journey would have been much less of a battering. 

So there you have it.

I do a great deal differently now and wish someone had shared their journey and insights with me when I was younger. I’d like to think I would have listened, although part of me thinks perhaps not.

As all business owners are facing challenging and uncertain times, know that you’re not the only one, that there are people and organisations that can help you and that you always have options.

The sooner you act the more options you have.