There is general agreement today that the economy is not in ideal condition; in
other words, it's bad. This could present a problem for those many who own
their own business, whether it is an established business trying to maintain
itself or a new business trying to take hold. Every little bit helps in the
current situation so following are five sure-fire ways to help your business in surviving a treacherous economy.
1. Back to basics.
Try and look into the daily operational expenses of your company and segregate
the things that are essential from the things that are for convenience. Most of
the time convenience is partnered with price. In such cases, when you are
concerned about business, that price is not cheap. So consider things which are
not essential and let go of them: the bottled water when people drink from the
tap, use recycled toilet paper and install water volume toilets.
2. Prioritize
Necessities should be your first consideration. Always put your utilities and operational expenses, which are essential, before anything else. Electricity,
water, phone and mobile phone bills must be on top of all the needs that you
have. Hopefully, you have already put aside the non-essentials from your budget.
This will make it will be easier to put into your budget the things that are
absolutely necessary for you to actually keep the business going.
3. Extend the time requirements for your debt payments.
While this at first sounds bad, this is one strategy that can be very useful.
Once you feel that your cash flow is reaching a critical point, start calling
the people you owe and ask if it is possible for them to make an extension on
your payment deadline. Do not let your pride get in the way of your success.
Most everyone understands the situation in the current economy. Do not sound
defeated and you will ensure that your message comes across to the people you
owe.
4. Remember the 80/20 rule.
A general rule is that 80% of your business is made up of the top 20% of your
customers. It may appear to be unfair but these are the customers you have to
take care of above all others. Spend extra time with these customers and make
sure that you have their business. Customer loyalty, especially during an
economic downturn, tends to sway to the better business. Emphasize making sure
that your business is on top of its game.
5. Develop name recognition.
Let the people know that you are there. Although, for some, it may seem like be
a bad time to put your money into advertising, just make sure you target your advertising dollars as effectively as possible. Try to contract with an
advertising or PR firm on a performance based payment plan. Gear your marketing efforts to make sure people remember you and your company. Never let people
forget about you.
Knowing how to manage your business during a crisis is an essential skill that
you must learn. The more you invest on crisis management early on the less you
will have to spend on damage control in later. Financial downturns are not
permanent so do not become discouraged. Do the best to survive during the
difficult times and you will come out on the other end all the stronger.
The author has a wide range of experience in many areas. For the last decade he has been involved in Information technology and the Internet. The Intenet is the ultimate source for information and rather than surfing back and for over hundreds of websites, go to the one website that that has it all, almost
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