Saturday Musings - Winter is Coming...

Winter is Coming....

Winter has come to Melbourne, Australia and not just Game of Thrones, Westeros. Outside my study window, blustery winds pelt pebble sized hail down to create a white sheet of rubbly ice on the grass. Inadvertently I pull the zip of my sweater up a little higher as if that alone will ward off the cold.

Escrow.com

This scenario is replayed out around the world but not just in the weather but in business. You’ve been working hard on your business for years and for some reason along comes an event that completely blindsides you. It could be a supplier changes the rules, a major customer moves elsewhere or even a piece of equipment breaks down. Whatever the event you find yourself thrust into winter.

It’s during times like this that businesses either remake themselves or they fold. During winter, it’s often less about profit (or loss) and more about the resilience of the balance sheet to make it through this time. For small businesses, it’s all about protecting the cash.

Winter is a time of assessing what is really important for your business and what is merely an interesting opportunity. Every expense item should come under scrutiny and it’s less about the size of the item and more about the process of asking the nasty question, “Do we really need this?”

I remember when the Global Financial Crisis (GFC) hit in 2008, marketers had their budgets cut and the bottom started falling out of the pay-per-click market. The double whammy for us was the Australian dollar rapidly appreciated against the $US and climbed to just over $1.10. It was a time of winter and one that very few predicted.

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