Showing posts with label Cash. Show all posts
Showing posts with label Cash. Show all posts
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Things for some people are bad right now. Some cannot see the light at the end of the tunnel. The worst part of this, is that the government suspect the economy is about to enter a double dip recession. If that happens, there will be a dramatic effect on not only banks and large corporations, but small business and profits as well.
No matter what happens, panicking about this is simply counter productive. It is best off to be prepared in case another economic storms rolls in. That way, if catastrophe strikes you will be prepared. If nothing happens you have also lost nothing.
Here are the top 10 ways to insure you business is protected against a double dip recession:-
1) Increase the advertising of your business. Normally ad agencies become highly competitive. They have to lower their costs for clients. Take advantage of this to increase your customers and profits. Sometimes you can double your advertising and the costs remain the same. So your profits are the same, and having double exposure will increase the chances of you name getting out there.
2) Increase your cash flow by using your client base. Use 2 for 1 deals, 50% off deals, limited offers, bundled packages. Too many businesses do not realize the money is in the list of clients they already have. Go to your top 20 clients on your database and offer them something they cannot refuse.
3) Make sure you are in constant communication with your accountant. This will ensure you are not going in above your head. Know and manage your budgets and talk to them about your limits, your risks, your advantages and disadvantage.
4) Cut back on unnecessary items in your office. Do you really need that water cooler, fancy photocopier, furniture collecting dust, laptops, stationary. Always buy what you need, and stick to your budget. Many companies that buy things they don't need are just wasting money. You would be surprised at just how much these things add up to each year. If you don't need it, don't buy it. Cost saving is the goal here.
5) Create a better marketing plan. Simple things can save your money and also make you lots more. Sit down once a week and work out strategies on what you do well, what you don't do so well, and how you can perform better. Make these meeting fun, and energetic, and include all your direct employees. You will be surprised at some of the ideas you will get from these brainstorming sessions.
6) Study trends during past recessions and find out what areas of your business did well. Then focus more on pushing these areas when you advertise. When the economic dwindles, people have less money. Most smart businesses add value and keep their prices the same. That way they get more of the market share, more clients and their profits increase, whilst their competitors suffer
7) If you do feel that customers are not committing to your products, lower your prices. This can hurt a little, but remember you still have profit targets, bills to pay, and employees to look after.
8) Network with others. Sometimes leverage is the most powerful vehicle in the business world. Lots of business is done by word of mouth now days. Find local meetings and network conventions to meet and greet others. Some of the biggest and most powerful business alliances have been formed from these events. Networking with others in your area, and business is a great way to take your business to the next level.
9) Test and measure your results. When things slow down, your results and business will change. What yo need to do is test and measure results. Test to see what is working and what is not working. Then it is simply a matter of doing more of what is working and doing less of what is not.
10) Never give up. There are far too many business owners that simply thrown up their hands and give up. That sort of approach to business never wins. If things get tough find a guru in your field and even pay them to help you improve your situation. They have the experience and have already experienced the highs and lows and even all sorts of economic climates as well. Their advice can sometimes be priceless.
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