The perfect storm
How can you make your business thrive in difficult times? Read our ‘top tips’ below on strategies you could implement today to help you weather the storm.
In order to survive tough economic times, business owners and directors will need to go back to the five basic tenets listed below. Build these into your strategy and make sure you keep on top of them by regularly reviewing your progress and taking the necessary action to keep you on track.
Keep on top of cash flow
- Prepare a cashflow forecast for the coming year and update it monthly
- Negotiate any extra funding as soon as you can foresee that you will need it
- Chase slow payers promptly and consistently to improve their payment record
- Know your customers and your customers’ customers – where is there risk that you will not be paid?
- Negotiate price reductions and extended credit wherever possible
Retain your best customers
- Understand who your best customers are
- Identify what you must do to keep their business and make sure this happens
- Talk to customers regularly to learn what issues they are facing, plus you will be able to reassure them of the steps you are taking to succeed
Keeping good staff
- Identify your top performing staff and work to make sure they stay with you
- Seek their input on ways to improve the profitability of the business
- If necessary make hard decisions about poorly performing staff and cut back swiftly - do not make cuts over an extended period as this reduces morale
- Look for inefficiencies in your business
- Discipline your spending by querying all costs over budget
- Set up teams to seek ways of reducing costs
- Strengthen internal controls to minimize the risk of fraud or theft
Guard your energy
- Spend time on the important issues
- Talk to advisers – they may have fresh ideas about how to tackle your current issues
View the Business strategy FAQs here.
Join us on LinkedIn
For useful business strategy tips from our experts, join our LinkedIn group: