Eight Steps Toward a
Prosperous Future
Positioning your company for an economic rebound
No one can predict with certainty what the economy will do this year: go up,
go down or remain essentially the same. But most economic experts agree that
a rebound is inevitable. And, when that occurs, you want your company to be
in position to reap the potential rewards.
How can you do that? Mainly through a little foresight and a lot of common
sense. Here are eight specific steps a company can take now to strengthen
itself:
- Button up the budget. Keep a close watch on proceedings and adjust your budget accordingly. For instance, a further downturn may require more belt-tightening, while an upturn could give you more leeway. If you utilize expert cost analysis and other budgetary measures, your company should be better equipped to capitalize on improving conditions.
- Reassess the workforce. Did layoffs cut too deeply during this year’s downturn? It may be time to rebuild your staff by adding highly skilled professionals to the roster. If it meets your company’s needs, hire temporary workers or independent contractors to help fill the gaps.
- Adhere to compliance requirements. It is important to “keep your eye on the ball” when it comes to financial reporting requirements, information technology (IT) controls, risk-assessment procedures and other documentation. Somerset associates can help you address corporate governance issues. We can also assist small public companies assess the means to comply with the Sarbanes-Oxley Act of 2002.
- Anticipate financial reporting changes. The Securities and Exchange Commission (SEC) is requiring that public companies report financials using an interactive data format by 2011. Other changes will involve convergence in the rules for domestic and international reporting. Help your staff become better educated and prepared for these initiatives.
- Train employees for the future. Undoubtedly, any training activities may have waned in recent months if your business has struggled. Reinvest in your people by reinstituting training procedures that can help your company seize new business opportunities. Emphasizing professional development can also boost employee job satisfaction and company morale.
- Improve IT systems. If your company has been forced to “make do” with outdated technology, it may be time to upgrade. Outdated systems can affect your ability to compete in the marketplace. Caveat: IT changes usually take considerable time and money. Before you undertake improvements, make sure you have the resources needed to implement the plan.
- Expand the product line. Be ready to launch a new product or service offering once the economy turns around. Conduct a thorough cost analysis, and use other business projections to improve the likelihood of a successful launch. Do your research now, and be prepared to spring into action.
- Protect your best employees. Currently, the job market is tight, but that can change dramatically under different economic conditions. For instance, some of your top performers may be lured away by competitors when the economy rebounds. Be proactive: Meet with employees regularly to discuss their career paths. Try to lay out objectives and let them know how much you appreciate their contributions.
As with the economy, there
are no absolute guarantees. But taking these steps should help position your
firm for the future.
Contact us to discuss your
plan to position your company for an economic recovery.
Wherewithal
is provided by Somerset for our clients and other interested persons
upon request. Since technical information is presented in generalized
fashion, no final conclusion on these topics should be made without
further review. For additional information on the issues, please
contact
a member of the firm. Somerset provides total financial solutions,
including accounting, assurance, information solutions, litigation &
valuation, tax, wealth management and management consulting services to
entrepreneurs and their businesses. This document is not intended or
written to be used, and cannot be used, for the purpose of avoiding tax
penalties that may be imposed on the taxpayer.
Somerset CPAs,
P.C.
3925 River Crossing Parkway, Third Floor
Indianapolis, Indiana 46240
317.472.2200 • 800.469.7206 • FAX 317.208.1200
www.somersetcpas.com
info@somersetcpas.com
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