Many business owners I talk to have been slow to make decisions lately. They feel uncertain about what 2025 will look like and are hesitant to make moves. When uncertainty is in the air, the best thing you can do is get back to the basics and control what you can control.
One of the first things a business owner must do is know their numbers. Cash is king in any business and your most important number. It will enable you to weather any storm and take advantage of opportunities your competition cannot. Every business owner must understand what an acceptable cash runway is for their industry. For many businesses, that is three to six months’ worth of cash, and sometimes more, especially in manufacturing or industries with inventory or lengthy sales cycles. Without cash, you don’t have a business. Make sure you have enough cash to weather any storm and track it weekly on your scorecard.
Speaking of scorecards, if you need to become more familiar with the concept, a scorecard is the 5-15 most important numbers you look at weekly in your business. Think of it as the numbers that give you an accurate pulse on your business. This scorecard generally includes cash, revenue, profit, your number one measurable, often referred to as your Profit Per X, and a few other critical numbers for your business. A scorecard will let you know your business’s score quickly and ensure you run your business on facts and figures, not feelings. When your scorecard is on track, you will sleep much better at night; when it is off track, you know exactly why you are awake.
In good times, a business can get by with mediocre execution; in bad times, if you don’t execute well, your business will not survive. Now, it is more important than ever to dial in your business’s execution system and ensure you are running on an operating system like EOS. A team that is executing well is disciplined and accountable. Every team member understands where the company is going and how it will get there. They meet weekly to ensure they are on track with their Rocks or priorities and work through the most critical issues in the business. Great businesses also have key processes in place to operate efficiently and the right people in the right seats to thrive.
In summary, when faced with uncertainty, the most powerful tool at your disposal is control over what you can manage. Start with a firm grasp on your financials; cash flow is the lifeblood of your business ensuring you can weather any storm and seize opportunities. Implement a robust scorecard system to track key measurables weekly, which will provide an accurate pulse on your business and enable informed decision-making based on data, not intuition.
Execution is everything. In challenging times, predictability and accountability are your best allies. By adopting a structured business operating system like EOS, you align your team, ensuring everyone is moving in the same direction. Make sure you use the right meeting cadence to discuss and resolve issues, track progress on Rocks (key priorities), and refine processes where necessary to keep your team disciplined and on track.
Remember, outstanding leadership thrives on decisive action. As Napoleon Bonaparte stated, “Nothing is more difficult and therefore more precious than to be able to decide.” When you take control of the controllables, you create trust and stability within your organization, build resilience against external uncertainties, and position your business for sustained growth and success.
Stay focused, stay disciplined, and trust in the process. Your commitment to controlling what you can will guide your business through uncertain times and set a foundation for future achievements.
Embrace the power of control, and watch your business thrive!
For more insights and download tools to help you navigate uncertainty, feel free visit EOSWorldWide.com/Ashley-Walters or reach out to her directly at [email protected].
YOUR PRIVACY CHOICES