Do you know about - How Your Small enterprise Can Survive An Economic Downturn
High Point Insurance! Again, for I know. Ready to share new things that are useful. You and your friends.When economists agree a downturn is safe bet don't immediately fire all your staff and get ready for the worst, after all your staff are your best asset. With some just cost-measuring measures to maximise your company's efficiency, you can alleviate the need to make uncut redundancies later.
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Financial experts offered the following guidance for those clubs intent on surviving an economic downturn:
Improve buyer Service
Understand your customers and what is happening in their markets. Anticipate their needs. Which customers do you want to attract and retain? Tighten up your ability control systems to avoid precious mistakes and warrant buyer satisfaction.
Manage Cashflow
If your business is a small to medium sized enterprise, you should combine more on cashflow than profits. Many profitable businesses face difficulties because they naturally run out of cash. Managing your cashflow enables your business to keep trading and that means reviewing all the areas where cash can become stuck or 'lost'. You need to recognize potential cash bottlenecks within your company; report your speculation in fixed assets, raw materials and saleable stocks; reconsider an acceptable principles of stock control, and re-examine your prestige system.
Halt Expansion Plans
If necessary you should delay any expansion plans.
Be Stingy With Credit
Avoid the temptation to win over large customers with generous prestige terms because if the large buyer gets into difficulty, your business will suffer the knock-on effects.
Review Your business Plan
Revise your business plan normally and update your visions, objectives and goals. Make sure every person in the business understands the business plan and the part they play in it.
Look At Your business Forecasts
Draw up a realistic business forecast and work out the 'break-even' point. Once you've updated your cashflow forecast, work out what impact a drop in sales will have on the business. This will furnish you with a clear indication of how your business will shape up if trading conditions get tougher.
Review Your Stock
Reduce your stock levels or have more frequent deliveries to keep stock levels low. reconsider selling off old or obsolete stock lines. Prioritise your fast-moving profitable items.
Know Your Best Customers
In many cases, 80% of a company's profits come from just 20% of customers. recognize who your most profitable customers are and focus your efforts on them. See if there any other areas in which you can diversify so that if you lose a large customer, it won't have a huge impact on your company.
Consider Your Suppliers
Does your business generally rely on one or two suppliers? What would happen if you had to find alternative suppliers? Can you negotiate discounts for prompt payments to them? Can you negotiate better terms so that you keep your cash for longer before having to pay bills?
Cost Control
In which areas of your business can you save money? reconsider bank and insurance charges and ensure you are getting the very best deal available. Look at rent, rates, power and lighting charges. report your time to come expenditure/capital/equipment purchases. What about productivity, the use of temporary workers, performance-related pay, leasing unused premises/factory/office space?
Cut Your Bank Charges
Decrease the amount of times you pay in and withdraw cash and cheques as your business is expensed for each transaction that appears on your statement. Avoid unauthorised overdrafts or exceeding overdraft limits, as the penalty charges will quickly mount up.
Forewarned Is Forearmed
Review what happened to your business in the last economic downturn and conclude where the most vulnerable areas where. If your business wasn't trading then, find out what happened to clubs in your sector of business.
Resist The Urge To Discount
Keep your prices up by adding value to what you sell. Avoid the impulse to offer ever-increasing discounts to maintain customers. Even in a high margin business, you will need to win substantially more volume to keep the same net profit if you give a small discount.
Keep Lean And Mean
Whatever the economic climate, the need to control a lean and mean business is always a driving factor for competitiveness. Businesses should try to see a difficult economic and competitive environment as an chance to improve their performance so that they can compete with the best.
Stay Calm
Don't panic! Stay focused and keep your objectives in mind. Don't forget to ask for help before things get desperate. There are many organisations that can recommend and help you to navigate the stormy seas. You only have to ask. Above all listen to citizen who understand what your business is going straight through and who have necessary expertise to contribute. Then commit yourself to success!
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