Issue 1 - Polson Higgs

Growth opportunities in a recessionWhile we all tend to focus on survivalduring a recession there is great opportunityfor businesses to set themselves for growth.This article has been prepared by ShirlawsBusiness Coaching looking at five growthopportunities in a recession. Polson Higgshas an ownership stake in Shirlaws NZ Ltd.Product innovationBusinesses that innovate their productduring a downturn always do well duringthe next boom. The easiest time to repositiona business is during a downturn. The hardesttime is at the height of a boom. Are you stillselling the same product in the same waywith the same pricing structure as you weretwo years ago? If so, then are you still sellinga boom product in a bear market?The key to this strategy: know how toinnovate product, know when to introducethe 'recession product' and when to dumpit in favour of the innovated growth product.To do:Boom time - Product extension strategyDownturn - Product innovation strategyChannels to marketIf a business innovates product then it isclear that they will use different channels tomarket it after a recession than before. If abusiness does not have enough revenuecoming through during a recession, it isclear that whatever channels to market thebusiness was using pre-recession wereeither not:• well enough established or• the correct ones to see the businessthrough all parts of a cycle.If it takes a business too long to establishnew channels to market in the next growthcycle then they can miss a large chunk ofuplift readily available.To do:Boom time - Channel extension strategyDownturn - Channel development strategyFunctional structureWhat stops a business owner/managerfrom spending the time to develop productand find those new channels to market?Answer: the functional structure of theirbusiness. When the manager is draggedback into the business during a recessionto "run" the day-to-day operations, he / shefinds it difficult to allot the space to undertakegrowth initiatives.The output is that the business needs a"recession functional structure" - a lot ofbusinesses fail to adapt their structuresthrough the cycle and end up simplyretrenching staff against cost budgets.To do:Boom time - Micro functionality reviewDownturn - Macro functionality reviewCapabilityWe come out of recession with a freshinnovated product range, sold into newchannels to market; the business needsdifferent levels of infrastructure and differentskill levels post the downturn. Fast movingbusinesses coming out of recession buildtheir capability.To do:Boom time - Wide capability strategyDownturn - Depth capability strategySuccession planningMany businesses forget staffingsuccession during downturns. It is almostas if staff are safe during the downturn sono need to worry about them. They will staybecause they are afraid of not gettinganother job.The problem is that staff, post recessions,then leave. This creates a recruitmentproblem, so while other businesses arestarting to grow during the upturn, somebusinesses are forced to focus on re-staffingand spend those valuable investment dollarson recruitment costs.To do:Boom time - External succession strategyaround equityDownturn - Internal succession strategyaround staffing.DIRECTORY OF SERVICESThe services offered by our divisions include:Business ServicesAnnual and periodic financial statementsTaxation complianceAdvice re business sale and purchaseBusiness and strategic planningBusiness and company valuationsFinancial forecastsSoftware installation and supportBusiness structuring adviceAudit/AssuranceExternal and internal auditReview engagementsCorporate governance reviewsInternal controls/procedures reviewsRisk managementForensic assignmentsTaxationTax compliance and planning reviewsFBT/GST/ACC warrants of fitnessIRD tax audits and binding rulingsTax advice on mergers and acquisitionsInternational tax adviceTrainingInformation TechnologySoftware developmentIT assurance/IT warrant of fitnessStrategic IT advisory servicePC and network supportPackage selection servicesProject managementFinancial PlanningInvestment management advice and solutionsPersonal, business and corporate insuranceEmployee benefit programmesEstate/asset planningBusiness Consulting GroupHuman ResourcesExecutive recruitmentStrategic remuneration advicePerformance managementPsychometric assessmentOrganisation reviewsMarketingStrategic marketing planningMarketing budget developmentAssisting with advertising and promotionMarketing for business profitability and growthBusiness IntelligenceFeasibility studiesMarket research for small to mediumbusinessesPolicy analysis and evaluationSurvey researchPublic opinion polling/organisational profilingTrainingBusiness Management skillsTaxation and Technical topicsAccounting for non-accountantsFinancial management skillsCONTACT DETAILSChristchurch officePartners: Frank Burgess, Taxation; Geoff Bolderston, Business Services;Phillip Roth, Business Services, Consulting; Michael Rondel, Audit &Assurance, Consulting; Noel Walton, Business Services; Frazer Weir,Business Services.Associate: Brian Clarke, Taxation.T 03 366 5282 F 03 366 4254 E info@ph.co.nz W www.ph.co.nzDunedin officePartners: Stephen Higgs, Business Services; Graham Crombie, Audit& Assurance, Consulting; Tim Dunn, Business Services; Phil Broughton,Business Services, Training; Steve Dunbar, Business Services, Insolvency;Michael Turner, Taxation; Henry van Dyk, Business Services.Consultants: Les Stewart, Business Services; Richard Joseph, Director- Business Consulting Group.Associates: Simon Cameron, Business Services; Carole Greer, Audit& Assurance.T 03 477 9923 F 03 477 9795 E info@ph.co.nz W www.ph.co.nz4