Is There a Quick Fix for Owner Burnout?

With the best business coaching programs, you can grow. However this challenging economy has taken a toll on most entrepreneurs; and owner burnout is common. Many business owners we talk with have a limited vision of where they are going and how they are going to get to where they need to be. They may have started out with some positive direction, but they have encountered obstacles to their success. The obstacles can range from massive debt or poor cash flow to poor sales, to working too many hours and missing out on important family events, to new competition, to bad employees or losing good employees. Frequently these obstacles make it “hard to see the forest because of the trees.”

There is one simple solution to owner burnout: business planning.

There is one simple solution: planning. An effective plan can transform your life in less than seven days. We use this with our best business coaching programs. Now is the time of year to make your plans for your business. Do you have a written business plan? If not, you should get one! Maybe you just need to update your existing plan. You have heard the familiar saying, “Those who fail to plan, plan to fail.” An effective plan can transform your life from despair to hope, from burnout to passion, from bondage to freedom. I don’t make these claims lightly. I see the results of effective planning with clients every week, and they are life-changing.

Business Planning is Like Taking a Road Trip

Think about going on a road trip. You need two pieces of information: Your present address and the address you are traveling to. Once you have that information, you can enter the addresses into Mapquest or GPS and the tool will guide you in the most effective way to your destination. There are a lot of wrong turns and wrong roads that you will avoid by knowing your starting and ending address.

Two things to Know: Where You Are and Where You’re Going

In the same way, with planning you need two similar pieces of information: your present business “address,” your location (in terms of business value, revenue, profits, cash flow, customer satisfaction, etc), and you also need to know the “address” you want your business to travel to (business value, revenues, profits, etc). Once you have determined these two pieces of information, you will avoid a lot of wrong decisions and wasted time traveling down the wrong business roads.

Rich Benefits Achieved by Effective Business Planning

There are a number of benefits you will enjoy by doing effective planning. Since we have owned a number of businesses, and since as coaches we work on many more businesses, we know the solutions to “hidden obstacles.” We help clients remove the obstacles and free them to move forward with their vision. We begin by helping them get crystal clear about where they want to go personally, and then through their business. We teach clients how to effectively plan without our involvement in the future. The end result is that our clients feel like a heavy burden has been lifted off them! They have hope. If you do your planning correctly you will be renewed, inspired and energized.

The Magnetic Force of a Written Business Plan

Words are powerful. As you write down your plan it is similar to a magnet; your plan begins to attract you to your desired destination. The practice of writing down your plans will help to establish your commitment to your own goals. This is like having a contract with yourself. There is built-in accountability, especially if you will share your plan with others. The more people you share your plan with, the better!

Important Elements of a Good Business Plan

The most important element of your plan is what you want personally. Your business should be the vehicle by which you achieve your personal goals. What do you want your business to look like in five years? Your business should reflect your personality, your values, and your strengths. Secondly, you should include in your plan how you want to make the world a better place. What underprivileged people groups are you passionate about? Starving children? Abused women? Make sure you include your passion in your plan. All these things are included in your Values, Vision, and Mission. Finally, you should break down your plan into smaller “bite-size” chunks, and complete some actions each day.

The Incredible Power of a Shared Business Plan

You have heard the wise saying that “knowledge is power.” To achieve your plan, you want to include as many people as possible who can help you get to where you want to go. Include your employees in your planning and share your knowledge with them. Help them to see how they will benefit by achieving your goals. Give them the power to help you succeed. Then your employees will become part of the solution. They will help you remove obstacles; your burden will become lighter. Also share your plan with your customers, your vendors, and any other stakeholders. Every time you share your plan, your audience will become energized, but most importantly, YOU will become energized. Share your plan again and again!

Conclusion

As you include these elements in your business plan, you will be amazed at the almost miraculous change that happens in you, your family and your employees.

We have found that with our best business coaching programs, planning can be life-changing. The sooner you begin, the sooner you can enjoy the tremendous benefits.

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While governments work to safeguard society against COVID-19, businesses must move quickly to protect critical stakeholders and their finances. The abrupt interruption created by the coronavirus pandemic resulted in a global economic collapse. Financial and operational issues happen, and it’s up to business managers and owners to overcome them. While CEOs will use their expertise to steer their firms through difficult times, they will heavily rely on the chief financial officer or CFO inputs to make business financial decisions.

A CFO is a single corporate executive officer or entity who performs the duties of a chief financial officer for a corporation. Many startups and corporations are trying to outsource services to save staffing costs including CFO. Because of this, it increased the amount of virtual CFO services hires rather than hiring a full-time in-house CFO.

Here’s how a CFO could help a company get back on its feet through the pandemic:

Analyze The Present Financial Situation

To get achievements, successful leaders do three things well: set priorities, work with the right people, and manage connections. To keep the business afloat, they would need to pay close attention to cash flow and raise any capital they could.

The current scenario is difficult for many. Collecting payments from delinquent customers should be a priority to boost the company’s financial status. When working capital is low, CFOs may seek a line of credit, joint ventures, or divestitures to raise funds. They may also desire to seek debt covenant relief. Currently, real-time liquidity tracking is required.

During a crisis, transparent and proactive communication with investors and boards is critical. The first several months are crucial for increasing communication frequency and transparency, and the CFO is responsible for this.

Implement Cash War Room

Cash is king in uncertain times, and liquidity is vital. Also, future financial shortages aren’t just a concern, but a reality for many.

To enforce strong expenditure controls across firms, CFOs need to create a cash war room. Customer payment delays require organizations to keep track of their cash on hand, as well as any additional capital they acquire, and CFOs to understand how all those assets are being utilized. CFOs will realize when working capital isn’t sufficient anymore. Finance leaders will require reliable technologies to give actionable knowledge that drives the organization. Establishing a cash war room is a smart starting step.

Improve Productivity Through Digitalization

To cope with the pandemic, many people may need to work remotely, utilizing digital collaboration tools. But the finance team’s use of technology to assist the company is not exceptional. Automated closings and real-time predictions are now possible. After the crisis, the CFO and finance team will push for enterprise-wide digitalization. Financial tools like the cash war room, rolling forecasts, and collaborative dashboards can benefit the entire firm. In future emergencies, reliable reporting, informed decision-making, and company continuity are important.

CFOs undoubtedly have a lot on their plates. Modern software can solve many of the CFO’s greatest difficulties. Enterprise resource planning or ERP systems, for example, include modules for financial management, production, procurement, supply chain management, warehouse, and fulfillment. In addition, reliable, robust data combined with real-time speed and strong analytic tools assist CFOs and their teams offer the correct information at the right time for sound decisions.

CFOs will manage creative company strategies. Giving the right people the proper technology and data to manage risks, achieve compliance, and drive their enterprises to innovative growth is their biggest challenge.

Succeed In The ‘Next Normal’

A CFO must plan for a transformation mindset when allocating corporate resources if they want their business to prosper following a devastating economic crisis.

The CFO’s team should assess the company’s investment portfolio and focus on each business unit’s maximum potential.

During the previous economic crisis, resilient corporations divested 1.5x more than non-resilient companies. During a recession, profitable organizations can benefit from mergers and acquisitions. This may improve a company’s investment in mergers and acquisitions or M&A.

Remote working has become popular and productive for many firms since the COVID-19 outbreak. After the crisis, most companies should continue the practice. When the pandemic problem is over, CFOs should check the financial implications of a digital workforce. The CFO team can help the entire company and its subsidiaries scale financial predictions and collaborative dashboards.

Reassess Investment And Strengthen Balance Sheet

During a crisis, CFOs should examine goodwill impairments, reduce inventory, refinance debt, lower accounts payable and receivable terms, and so on. Balance-sheet cleaning can increase financial flexibility while keeping everyone focused on essential indicators during a tumultuous period. CFOs should help peers examine important R&D, IT, and capital allocations to improve the company’s investment portfolio. The pandemic is quite likely to have altered business units’ initial estimated returns on investments.

Manage Profitability

In the short term, companies are looking at their costs to flex and cut them. When the market takes up again, the challenge will be to balance cost reduction with rapid expansion. Critical resources may have been underestimated to the point that they cannot support future growth.

Finance should look at both sides of the profitability equation to avoid this error. Actions to reduce costs and generate revenue should be prioritized. Desperately seeking higher profit markets or goods, firms could shift resources. To minimize over-discounting by salespeople who are eager to make a sale at this difficult period, sales support could be focused on monitoring pricing.

Moreover, the analysis should probe the business, the operating model, the added value of activities, the sourcing model (in-house or outsourced), the demand/supply chain network setup, and so on. The CFO should aim high for a business-wide transformation. Now is the time to rebuild the fundamentals, to completely revamp the business model, and to prepare for the competition that’ll follow once we all emerge from this catastrophe.

Conclusion on Having a CFO

The CFO will keep all employees informed of the company’s crisis management plans. Effective communication dispels rumors, keeps staff focused and motivated. When planning initiatives, CFOs must evaluate both the best- and worst-case scenarios. No one knows how this global crisis will end, so they must consider all stakeholders, suppliers, customers, and employees.

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Can There Be a Quick Fix to Owner Burnout? Definitely!