Businesses now have to operate in a tough environment. What
should be your priorities?
1. Cash flow before Profit
Positive cash flow is more important to your business health than
profit. Reduce stocks and debtors wherever possible to release
cash for marketing and development
2. Minimise debt. Talk to your creditors
You must avoid your creditors pulling the plug. Reduce your debts if
possible, but talk to your creditors. That has no cost apart from
your time and allows you to convince them of your business value.
If they think you are trying to fool them, they will want their money
back quickly.
3. Plan for increased cost of winning new business
With less business being done there will be more competition for what
there is. The easiest - and most dangerous - strategy is to cut
prices. Justify existing prices with improved product and service. Boost
marketing spend where you have immediate proof of profitable sales and
reduce the long term 'brand building'.
4. Continue long term improvements
Invest in your own future so far as resources permit. Become
more responsive to customer needs. In a market where everyone will
be reviewing their options more frequently, there will be more
opportunity for the best businesses.
5. Make your website profitable
For most small businesses, the web is now the most-cost effective
marketing weapon. If your site is not producing new sales or
leads, you should immediately analyse the problems and rectify it.
Aim to increase your market share during the recession, then you will
reap the profit in the next upturn.
Good Luck - and let me know if you think I can help.
