Business Strategy – Complacency

“A feeling of contentment or self-satisfaction, especially when coupled with an unawareness of danger, trouble, or controversy”.

“An instance of contented self-satisfaction”.

How often have you heard one of your business clients utter the immortal words “Things were going so well – I didn’t see the danger until it was too late!”? While having a feeling of satisfaction in a job well done is a positive outcome, that same feeling can be the ruin of a good business when overshadowed by short sightedness, arrogance and over confidence. The one critical characteristic that separates okay businesses from great businesses is their desire (at all costs) to avoid complacency creeping in to their operations.

Complacency comes in many disguises:

  • Thinking you are so far ahead of your competitors you can “take it easy” for awhile
  • Considering you know what your clients need better than they do
  • Ignoring the importance of clients (and staff) who refer new business
  • Believing you have enough experience, knowledge and/or skills
  • Disregarding high staff/client turnover and considering it someone else’s problem
  • Assuming that “good enough” is going to be satisfactory to your clients

These are some of the signs of a business that is complacent about its success. Complacency can strike at any area in your business: your efficiency and productivity; the effectiveness of your procedures and systems; the quality of service you offer your clients. Some of the most common areas of complacency we see are in the leadership, knowledge and skills in a business. While complacency is defined as a “feeling”, unlike being happy or angry, the damage to your business can be profound. Let’s consider the impact of a complacent leader and complacent business:

  • “I know enough/I have sufficient skills to run this business” – people, businesses and markets change every day. If you are satisfied that you know enough, or have enough experience to effectively lead your business towards your vision, reconsider. Leaders who seek to continually build their knowledge and skills are far more effective in keeping abreast of important changes and making course corrections so benefit of their business. The day you stop learning is the day you stop leading
  • “We are far too good for our competitors” – that may be true today but what about tomorrow? If your business is complacent, it fails to understand that there is always going to be another business in the market seeking to overtake it and attract your clients
  • “Our service is good enough” – service can always be better. A Business that cast’s off complacency and adopt’s continuous improvement are those that have recognised how dangerous being satisfied with the “ways things are” can be
  • “Sure we have high staff turnover but that’s just because staff can’t hack the pace” – if you are complacent about staff turnover, you are failing to recognise that things are not all rosy in your business. Thinking it’s your staff’s problem is a certain recipe for eventual disaster.

Complacency is insidious and starts with something as simple as “oh – that’s good enough”. As the leader, you need to ensure that you continue to challenge the status quo to avoid complacency creeping in. Ask yourself: “How can we do better?”; “What ways can we improve our service?” and most importantly “What lessons did we learn when things went wrong?”

Collecting Cash Before Christmas

It can be difficult to get payments at the best of times from your customers without having to deal with Christmas. Christmas often sees people spending money on presents rather than on their due and payable accounts. To get your account paid try the following methods:

  • Send accounts early. Sending your accounts out earlier than normal will help you to get money in quicker and payments on time. December may see you struggling to receive any money so send them a.s.a.p.
  • Phone customers. You might like to ring your customers prior to their account being due to ensure that you will receive payment on or around the account due date. This could reduce the amount of people likely to pay late.
  • Offer a Christmas discount. As a Christmas generosity you can provide a small discount to those customers who pay their bill prior to the due date. Your discount only needs to be 1% or 2% off the total price payable which to a customer can be a lot, especially when saving to buy their loved one something special.
  • Deposits. For new customers wanting to use your business prior to Christmas you may decide to implement an initial payment strategy which allows you to collect a portion of money from your customer, ensuring that you have sufficient money coming into your business. Furthermore, if your customers are adaptable to your business you may decide to ask for a deposit, only during the months of November and December.
  • Part payment opportunities. Depending on the size of your customer accounts and orders, a part payment system might be suitable for your business. This system allows you to collect money on a regular basis over a specified period of time without putting the customer into hardship. Again this will help you to collect funds for your business.
  • Competition. Again this will depend on your type of business and what you can offer, however a competition can be setup for account payers. You might have a Christmas hamper or go to an extreme such as a Christmas holiday, in which your customers will enter free when they pay their account by the specified date.

Getting paid for your goods and services on time is important and therefore you may need to implement some measures over the Christmas period to ensure you receive your money when it is due and payable.

Get in touch and ask us to conduct a business evaluation and find out about our unique way of designing and implementing strategies to generate sustainable business improvement.