Business resilience is the capacity of your business to respond to changes in business conditions.
A boom in economic activity brings with it risks and opportunities, an immediate impact of an economic boom can be:
an increase in new work, whether from new opportunities and clients or from greater success with existing clients.
a hire rate of staff turnover. Key personnel can be lured by new opportunities and skilled personnel becomes scarce.
materials and plant can become harder to find and rates can move significantly.
Strategies can include;
set objectives and targets for the structure and condition of your business at the end of the boom; debt, work portfolio; clients and jobs. What is the long term sustainable size of your business.
improving tender/quotes/estimate processes to ensure you are selective regarding your job portfolio. Ensure you consider possible resource and capability challenges.
Increase your capability incrementally, where possible expand without over extending your capacity; for example in a plant heavy operation use 60:30:10, own 60% of plant, longterm hire 30% (subcontract or dry hire) and short term hire 10%.
Use third party plant hire rates in estimates rather than internal plant recovery rates.
A boom should be an opportunity to work for greater return and deliver a more resilient business. Unfortunately some business will work hard for less and find themselves vulnerable when the boom ends.