Here are ten top tips for surviving the recession:
- Manage your cash flow
There are many ways you can manage your cash flow from negotiating longer credit terms with your suppliers to chasing up debtors. Other techniques you can use include keeping in touch with your bank and trying not to buy more stock than you need, no matter how cheap it is!
- Look at other ways to sell
Using additional channels to sell your products and services can expose your business to a larger market at minimal cost. Selling online is a huge channel with massive potential, so make sure you encourage customers to purchases from your site by providing a secure payment process with added security.
- Cut costs
Look for savings in every part of your business. Do you really need a big office? Consider moving to smaller premises or even subletting some of your existing space. The same applies for excess equipment – sell what you don’t need and consider hiring expensive equipment rather than purchasing it. Try negotiating new terms and conditions with your suppliers.
- Being green can help your business
Becoming a responsible business is not just about helping to protect the environment; it can also save you money. Turn off your electrical equipment when it is not in use to save money on utility bills.
- Increase your marketing
As many companies cut back on their marketing to save costs, this gives you the perfect opportunity to tell people why they should buy your products and services over your competitors.Marketing is an investment in future sales and could help position you for the upturn. Review your marketing plan and revise your goals and budget – effective marketing doesn’t have to be expensive.
- Concentrate on product and services that sell
It may not be the right time to begin developing new products, so if you have profitable favourites then stick with them.However, for some businesses identifying new products and services to sell to an existing customer base may be worth considering. Product/service development can be risky at anytime though so beware.
- Focus on retaining your customers
In uncertain times, consumers cut their spending. You need to do everything you can to retain your customers by offering loyalty schemes and keeping in regular contact to let them know how much you value them.Don’t be tempted to slash your prices, this can send out the wrong impression. Instead offer your customers added value short term deals.
- Avoid borrowing
In the current slump loans are harder to obtain and more expensive so do try to avoid borrowing at all costs. Instead, look at ways to save money by cutting costs.
- First class customer service
Customers welcome good customer service so make sure your business stands out by offering an efficient service with fast delivery. This will ensure your customers spend with you and not your competitors.
- See everything as an opportunity
Be optimistic, plan ahead and use every opportunity to your advantage.If you need more advice on any business issues, our Business Advisory is waiting to take your call now on 020 7439 1050.
For fresh ideas, new possibilities and a value driven service go to Garside & Co LLP Chartered Accountants in London.