Surviving & Combating Economic Recession
Surviving an economic recession in the wake of 2008 is going to be difficult for any business in UK or
globally. However, there are ways of improving the odds. Here is how:-
Manage Your Cash Flow
Find out what your finances are really telling you.
Check List:-
- Issue invoices promptly and chase up debtors
- Don't buy more stock than you need
- Negotiate longer credit terms with suppliers
- Fill up gaps in your forward order book
- Keep in touch with your bank
See our article on ways of improving cash flow.
Cutting Your Costs
Look for savings in every part of your business.
Check List:-
- Turn equipment of at night (good for the environment as well as your power bills!)
- Is every business journey necessary?
- Check that you are taking full advantage of your tax allowances
- VAT relief on bad debts can help reduce the expense of bad debts
Credit Check New Customers
It may only take one major customer to go bust to jeopardise your business.
Check List:-
- You protect yourself by conducting rigorous credit checks on new customers
- Agree clear credit terms up front
Focus On Retaining Existing Customers
Do all you can to keep your customers coming through your doors.
Check List:-
- Is a loyalty scheme appropriate?
- Consider small discounts
- Plan regular communications with your customers
Provide Outstanding Customer Service
Consumers appreciate businesses giving them more for their money – especially when times are tough.
Check List:-
- Speed and efficiency of your goods / services
- Consider flexible terms for reliable customers
- Test performance against procedures
- Listen to customers and act on their feedback!
Increasing Your Marketing
When competing for a smaller pot of money, it becomes more important than ever to tell people why they should come to you.
Check List:-
- Monitor any marketing you carry out
- Measure its success and decide if it is worth continuing
- Research all available channels i.e. telemarketing, online, press advertising.
Concentrate On Products & Services That Sell
Don't put your efforts into trying to sell things that are untried, or that you know few people will buy.
Check List:-
- Stick to profitable favourites
- Don't be tempted to slash prices if your product isn't price sensitive
Training Your Staff!
Your staff are one of your GREATEST assets and could even be the key to retaining customers and keeping your business running.
Check List:-
- Do you have the skills you need to take your business forward
- Consider retraining staff to fulfil new or changing roles – Help and government grants maybe available.
Streamline Your Business
Consider moving to smaller premises or even subletting some of your existing space.
Check List:-
- Consider moving to smaller premises
- Sell off excess equipment
- Make sure your staff are concentrated in the right areas
Sell Online
An online sales or marketing channel can expose you to a larger marketplace for minimal cost.
Check List:-
- Make sure your site is easy to find and navigate
- Provide secure online payment facilities
- Ensure your website is compliant
- Ensure your website can accept credit and debit cards if on-line sales are required
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