Every business that has been running for a few years, has experienced an economic recession, yet some do not survive it.
Some business owners panic and either freeze and hope that recession will not affect their business, or, take drastic actions (without proper analysis) thereby affecting the sustainability of the business.
Preparing for a recession is part of any well managed business so when the signs of declining economic activity are felt, it should have plans in place to ride the depressed climate and sustain activities through the difficult period as follows:
1. Evaluate and eliminate excessive debt.
2. Analyse and reduce operating costs
3. Streamline by downsizing and improving productivity
4. Reduce stock holding at bargain pricing
5. Track Key Performance Indicators (KPI) daily ongoing – financial and performance measurements
6. Train and multi-skill staff (make every employee a salesperson)
7. Evaluate marketing spend and focus on internet marketing
8. Increase sales activity and management
9. Promote Competitive Advantages / Unique Selling Points of product/service
10. Expand geographically into other regions
11. Focus on quality and customer satisfaction
12. Keep close management control on all aspects of the business
This may sound like a long difficult list of actions to take, however, it is critically important to do ALL of them rapidly to ensure viability of the business.
Should you have any questions or require further information about any of the actions above, please contact us firstname.lastname@example.org