The Tribune

By Simon Cooper

Res Socius

A start-up is a new enterprise going through the early phases of development. We all hope ours will be characterised by rapid growth and venture capitalists kicking down the door. The reality is more often a profit slowdown, as expenses rise following the initial euphoria of starting something new.

This is the point when, to coin a hackneyed phrase, the tough get going while the losers chicken out. Assuming you have the resources to hang on in there, here are a few possibilities to consider.

Keep Connected – Refresh your social media pages and start blogging as if your life depends on it. Remember to distinguish yourself from the competition using accreditations, licenses, staff qualifications and experience. Just do not make the mistake of overdoing it, though. We all know how we feel when we’re on the receiving end.

Fine-Tune Cash Flow – Aim to pay for things when you can afford to as opposed to being obliged. Got a bit of spare cash? Don’t draw it out. Accrue it in terms of provision for retainers or negotiate a discount from a supplier on advance purchases. Outsourcing at fixed rates is great for cash management ,too.

Simplify your Management Style – The business may be your baby, but it needs to walk on its own real soon, so that you can take a break from time to time. Go hands-off wherever possible. Replace micro management with employee-friendly systems. Then go out and cut another deal.

Have a 100 per cent Sales Force – Any employee who’s not also selling is a wasted resource. Your administrative staff speak to your customers every day. Mix things up and break the mould. Welcome them into the world of incentives and encourage them until they succeed.

Keep Changing the Rules – Never forget the imperative to innovate constantly, because that is the only way to keep ahead in any market. Find reasons for your customers to reward you with repeat business. This could involve financial incentives. It could also be as simple as regular phone calls.

Show Appreciation – ‘Thank You’ is one of the most powerful phrases in the English language. Yet how often do we use it? Say thank you to your staff, thank you to your customers and thank you to your suppliers at every opportunity. Don’t make it hackneyed, though. Sometimes, a simple gesture is as powerful as a thousand words.

The smarter you get, the more likely it becomes that somebody else will enter your market. Be astute enough to anticipate this and be ready to re-invent. Remember this. If you are planning to be doing the same things in three years’ time, chances are that you won’t be around to do them then.

NB: Simon Cooper is a founding partner of Res Socius, a business brokerage firm and businesses for sale directory service. Res Socius is authorised by the Bahamas Investment Authority to facilitate the sale and purchase of businesses and provide consultancy services. Contact 376-1256 or visit www.ressocius.com.