10 Things To Do to Survive a Recession
1. Cash Management
Do you know where all your costs are? Have you carried out cost comparisons recently and revisited your suppliers to ask for a discount? Remember "Cash is King" and should be monitored daily. Those businesses that are truly successful prepare a three month cash flow forecast and monitor it daily - they know exactly where their money is and are able to plan accordingly.
2. Stocks
Do you hold stock that you don't need, have a stationery cupboard that is brimming over with items you will never use or have equipment lying around that is no longer useful to you? If so you could save money in rent by selling it or asking your suppliers to hold stock for you.
3. Debtors
Debtors will keep your cash flow right, are you sure you know who owes you and when the money is due and are you chasing debts in a structured and timely fashion. Remember, we are all in the same position and if you don't chase you can be sure others are chasing the same people and you may find yourself at the bottom on a customer’s payment pile!
4. Sales
If you have sales people are they motivated - selling becomes ever more difficult in a downturn. Make sure you are selling on service rather than price and win business that remains profitable.
5. Marketing
Have you cut back on your marketing because it costs too much? You should look for alternative, more cost effective solutions - if you aren't letting prospective customers know you are there they will definitely buy from somebody else. Try using the web more efficiently.
6. Networking
Do you attend events and mix with people who could refer business to you? Networking, both online and offline can be done the most effective ways for small businesses to generate business - people buy people after all.
7. Customers
Who are your customers and does everyone in your business know who they are and what they buy? Your staff can help you to both win more business from customers and ensure that they stay with you - keep them informed and involve them in your customer care processes.
8. Information Technology
Are your people using your systems for maximum productivity or do you have systems that are too cumbersome for the job? Your people will have the best ideas for streamlining processes and gaining maximum efficiency from your IT - ask the systems they have are fit for purpose and for ideas to use them more effectively?
9. People
Do you think your staff will stay with you because there are no other jobs? This may be the case, but what about when things get better? If you don't look after them know they will surely look elsewhere when the going gets good. Think of alternative ways of rewarding them - people are often not only incentivised by money but praise and recognition for a job well done.
10. Training
Last but not least! Is training the other thing that you have ceased to save costs. Think again, if your people don't know how to do something or are not receiving on-going development they will get bored and probably under-perform at the very time when you need them at their very best. Put in a structure so that training is assessed before and afterwards and you are sure of the impact on both the individual and the business.
These are just a few of the areas that we cover in our "Recession Proofing Assessment". Why not take five minutes and have a look at our full template and take the assessment to identify the true vulnerabilities in your business. Learn what you don't know and become more focused on managing through this economic downturn.
Wendy Taylor, Managing Director of Taylored Assessments Ltd Wendy has many years experience of working with SME's and professional firms, helping them to market themselves in the most cost effective way. She has also been heavily involved in mentoring and works with other professionals to offer a full service. Her organisation and people have developed a range of business assessments covering every aspect of running a business and these have now been made available for other professionals to use as their own, or owner managers to assist them in developing their businesses in the most structured and cost efficient way through knowledge, people and understanding.