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Doing the Right Things at the Wrong Times: The Impact On Your Business

Working with companies in the past, I’ve often witnessed occasions where businesses have been negatively impacted by taking the right action at the wrong moment. Quite simply, in the world of business, timing is everything. If you act at the wrong time, it could have an adverse impact on your company.

Too Many Tasks

Many business owners make the mistake of acting at the wrong time because they are so laden down with tasks and responsibilities. When faced with an overwhelming amount of work, there’s a temptation to seek to ‘get the job done’ as quickly as possible, in order to be able to ‘tick off’ the to-do list.

However, every task that you complete in a certain order will have impact on the direction of your business, and on future results.

Right Actions, Wrong Time: A Cautionary Example

A Business Owner operating within the retail industry invests in a number of new products. This immediately presents him with a series of tasks. He needs to consider marketing, taking photos, creating product descriptions on his site, packaging and much more.

Instead of adopting a measured approach and planning the launch of the new products carefully, he hastily adds them to the site. As a result of not organising proper marketing, the products aren’t seen by many people, and not many sales are made. However, his competitor has seen them; and has also recognised their potential.

Soon, the same competitor has invested in a similar product, has launched it far more effectively and is receiving the majority of the market interest. In contrast, the original business owner now has a stock-room full of product that has lost its fresh appeal, and will have to fight harder to sell it.

What Should You Do?

When faced with a set of tasks, follow these steps: Ask, Plan, then Act.

Ask:

To ensure success in business, it’s important to seek out the help and guidance of others, particularly if they have expertise and experience that can add value to your own business practices. If possible, find a mentor who can work with you to ensure that you’re prepared to take action at the right time and in the correct manner, in order to maximise results for your company.

Plan:

Planning is an integral part of business success. Firstly, identify the results you want to achieve. Then start assessing how you can make that happen. What steps will you need to take to achieve it? What tasks can you delegate to your employees to increase productivity and efficiency? How can you make sure that your actions yield the best possible results?

Act:

Lastly, it’s important to not confuse planning with procrastination. Once you’ve made your plans, it’s vital to act decisively, in order to achieve results.

Doing the right thing in business terms is important. In fact, it’s how your business will develop and experience growth. However, acting hastily, without due planning or guidance, can have serious implications for your success.

The Correct View When Building Wealth With A Business

High inflation,

Even high inflation, is not necessarily detrimental to a business. High inflation simply means there’s an increase in the price of goods and services, and that’s precisely what a business sells. Although business expenses rise due to inflation, the income should also increase in line with inflation.

If the inflation rate is 10% per annum, then business profits should automatically increase by 10% p.a. This increase is irrespective of any growth experienced by the business from a greater demand for its goods and services. Hence, it’s clear that a business can be used to protect yourself against inflation. For example, compare a bank investment with an investment in a good business.

The income (interest) on the bank investment will more or less stay the same from year to year. However, the purchasing power of the capital, which is invested, will decrease every year due to inflation. However, an investment in a business is different. The profit in a well-managed business will increase annually and keep up with inflation. The value of the business will also grow automatically, since the value of a business is based on its profits

What is the effect of inflation in your business

The conclusion is that inflation is not the enemy of an investment in a business, but rather a strong motivation to make this investment. A business hedges the income, and the capital value of the investment made in it, against the destructive effect of inflation.

The next aspect that a business should be measured against is the consequences of a recession. If economic growth is negative, but inflation exists (as was the case in 2009), then a business could still experience growth. So, even if there’s no economic growth, a good business can still grow in line with inflation.

The secret of well – managed business

Well-managed businesses could experience growth even though the average economic growth rate is negative. No matter how bad things are, there’ll always be certain businesses that grow rapidly due to an increased demand for their products and services. Remember, that the global population, and the middle class in particular, is increasing and these people must satisfy their needs.

For this reason, businesses that sell food, for instance, should experience positive growth, even in a recession. The same applies to other goods and services that are always in demand.

The conclusion is that your own business can still record real growth despite recessions and high inflation. It should now be clear from the discussion above that a business, chosen according to sound business principles, can be instrumental in building wealth.

People who fear short-term fluctuations in their investments will get poorer over the long-term. Inflation will destroy their investments! However, if you take a long-term view with your investments in listed shares and your own business, then you could build wealth in any kind of economy. All of these investments could benefit from inflation, survive recessions and convert poor returns into exceptional growth.