In an open letter, Cornwall Group’s chair, Mark Mitchell, gives five tips on how to prepare your business for when the market picks up.
Now that the election is out of the way, I expect market activity to pick up again. Not necessarily because a different party is in power, but because the government has a decent majority and will be able to carry out their plans.
Difficult market conditions often arise from a lack of certainty, which could relate to specific laws being held up in the debating process.
However, we don’t expect to see the tap turned on immediately, and it’s going to take at least two quarters – in my opinion – for stalled projects to get moving again, especially as expected lower rates have an impact on the cost of borrowing.
And this could range from homeowners choosing new windows to big government-funded newbuild projects.
So, do we sit and wait for that work to appear, or can we be doing something now to prepare for that work when it comes?
Keep on top of news
Many opportunities present themselves because you are aware of what’s going on. Listening to, or reading the news is a good start. For example, there is much talk about the government’s plans to update the planning laws to make it easier for housebuilders to begin developments.
But on a smaller level, there is constant news about new projects, local planning approvals, and new products.
And don’t limit your news consumption to news outlets, talk to your customers, talk to your suppliers, and maybe take an interest in global events – it all affects our work, and it gives you the tools needed to make big decisions.
Be aware of the cyclical nature of business
The longer you work, the more likely you will see patterns repeating themselves.
Appreciating that the market goes though cycles of activity could work in your favour. Rather than fretting that another downturn may just be around the corner, how about developing new market opportunities, such as maintenance contracts? Or ramp up your product development cycle so that new ranges come online as the market returns to full strength?
Invest in your workforce
Never under-estimate your team, and never take your colleagues for granted. And this is a key piece of advice we truly stand by.
Our now famous apprenticeship programme drives a lot of talent through our doors, and we retain many people who complete those courses. We also go above and beyond what’s expected of us in terms of employee benefits. For example, we have a good pension scheme, private healthcare, generous annual leave, unique training opportunities, and we offer flexible working hours where possible.
This isn’t just about doing the right thing, this is about meeting the needs of the market. We are seeing fewer people move jobs for the sake of a few extra pence per hour. Instead, people are looking for job security, stability, career progression and personal development.
And because we can’t operate a successful business without the right people, creating the right environment for a happy team makes commercial sense.
Invest in your business
We don’t invest for our requirements just for today, we invest for five years’ time. We are not looking for short-term gains. Instead, we are looking for long-term stability, which will give our customers confidence to look for new opportunities.
The turnaround time for a toughening plant, for example, is 12+ months. If we had a requirement for a new furnace, then acted upon it, the business opportunity would have passed by the time it was installed.
Without this longer-term view, we wouldn’t have invested in new high-speed IGU lines, a new heat soak furnace, new cutting tables, new fleet, or indeed new colleagues. And if we didn’t have those assets, we wouldn’t be able to support our customers now with leading products and services, nor be as prepared as we are for the expected increased demand in six months’ time.
Which brings me on to my last tip.
Have a plan
What you don’t want to do is drift, without any idea of where you are going. But if you follow the news, listen to you customers and suppliers, and make strategic investments across the business, the chances are that you have formulated a business plan.
And this is important, even if those plans change over time.
When most businesses make projections – which they will have to do for investors and lenders – they don’t expect them to be absolutely right.
As a business, we can only forecast using the information to hand, and we all know how they can be thrown off course by a pandemic or a war.
Don’t do nothing and wait for the opportunities to appear before making a decision, because you’ll be behind the curve. Thinking strategically about your business will create the foundations for growth, even if you alter direction further down the line.
For more information, please call 01726 66325 email info@cornwallglass.co.uk or log on at www.cornwallglass.co.uk .