Building Genius profits and protection....Pt 2 (in a rising interest rate market)...
- Steve Fleetwood
- Mar 20
- 3 min read
Rising interest rates create a reduced disposable income (due to the mortgage belt market and debt structure cost) in which will have an effect of at least 50% of SME's in Australia and over 30% for large businesses. How do we strategically combat this simply, logically, effectively and systematically?...
As you are aware interest rates are the accelerator and brakes for the economy, with the RBA goal of long-term inflation of 2-3%. And thus, rising interest rates slow the economy. to reduce inflation.
Here is our first blog for building blocks for Market power building and structural understanding and development for Building Genius profits and protection....Pt 1...
Let's do a quick savvy top down and bottom up approach...to get you going and adapting to the changing macro forces.
STEP 1: Balance sheet analysis (I have master's in Applied Finance with a double major in corporate finance, investment analysis, and started looking at 100 million plus balance sheets since my early 20's):
1/ Do you have the right financial structure? Are your fixed rates too high? Are you running your business through lines of credit (LOC's) or CMT's or CMA's,
2/ Do you have too many property assets (we see this all the time, "A Lazy balance sheet"), and perhaps using the equity (via a LOC) for marketing, innovation, software upgrade (AI's, CMT's for efficiency gains, i.e. using the 10-year property boom gain for reinvestment in your organisation/business),
STEP 2: Top Client and Customer analysis and evaluation:
1/ Move the percentage from the classical 80/20 rule to 60/40 (our normal recommendation for business's) to diversify revenue from market and segment broadening,
2/ Invest in your top 10 clients and customer groupings (As you know it costs 6X Vs 1X for obtaining a new sale for new vs existing clients and customers).
3/ Investing in your top 10 can be simple as:
- Advisory networking, business groups and outings,
- Retail, outdoor events "hot dog sizzle", loyalty programs, birthday programs, Gold Passes for the movies, or Theatre Play and Orchestra events,
- Gifts and gift cards and for X dollars spent or 3 for 1 etc but only for top 10 or 10% clients,
- Your networks children, "A Day with the CEO/Owner", you would be surprised how many parents want their children with "REAL WORLD" coaching and experience,
- A sporting event program, tennis, soccer pavilion etc,
- A wives/girlfriend only event "horse racing" sponsored by your company etc,
4/ Create a new category of customers or clients that you want to develop, improve and grow with as they move through different stages of their life and career,
HINT: We would suggest you start building networks and relationships with GEN X as the baby boomers pass their considerable wealth on, (maybe even invent a product or service just for them...)
STEP 3: Review your Marketing and Brand strategy and plan:
1/ Transition your business to an "Omni" Brand model, that is multiple touch points, which sits within your marketing plan and strategy
See our Blog on HOW and WHY to become a OMNI business brand model integration with Blue Ocean strategy integration.
STEP 4:
1/ Review your analysis of your industry and competition, and where the opportunities are? e.g. do you know competitors who will be crippled from interest rate and less top line.
2/ Consider JV's/SP's or a buy out of their business or organisation? (buy when their cheap not expensive right!!),
3/ After review, begin a micro marketing plan, the 7 P's, to capture more market while your competitors are "fumbling and dropping the ball", meanwhile your strategic and tactical!
Course Update: We will be now including AI in our course, Our new course:
"The Genius Entrepreneur and Business Leaders" -Sustainable Sales for Future Markets and Economies.
Available for digital downloads soon.
Contact Star for a consult with our MBA+ consultants... for fast development, improvement, and growth in Strategy, Sales, Marketing, Leadership, and Culture for sustainable strategic advantages and earnings power!.
Or Myself,
We look forward to interacting with you soon.
Steve Fleetwood: Founder,
MBA, MApp Fin (CF, IA), DFP-CFP, Cert 4 Training and Assessment.
M Int: +61 433 622 265
M Aus: 0433 622 265
Also, we are receiving more international enquiries, so we will be instigating a phone consult per minute service, allowing for quick and easy access to US.
NOTE: No AI was used in any of these posts besides grammar/spelling checker and Picture generation!
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