The old saying, “When the going gets tough, the tough get going” has never been more appropriate than in our present economic conditions. It is essential to maintain a positive, can-do attitude and this is not always easy when the daily media, government and social chat are preoccupied with the latest bad news involving employment, company collapses and so on. It is essential to do the little things well in all areas of your business, i.e. operations, marketing and finance and remove the inefficiencies which creep into most businesses in good times.
Practical Tips For Your Business:
- What opportunities have the current economic conditions created for your business?
- Develop a marketing plan with specific strategies.
- Understand the difference between marketing and sales.
- Know the real costs of your products or services (including overheads) so that prices, discounts and margins can be clearly set.
- Power of multiplier – upwards & downwards (discounts).
- Implement a strong system for credit management and debt collection.
- Know the break-even sales level of your business.
- Project the capital requirements for the business for both working capital (i.e. funding normal trading activities) and capital expenditure (new plant, equipment and vehicles).
- Prepare and monitor cash flow forecast on an ongoing basis.
10. Analyse all systems and procedures in your business to identify improvements and savings.
11. Negotiate better terms with major suppliers.
12. Understand the numbers.
- Balance Sheets
- Profit & Loss Statements
13. Identify the “Key Performance Indicators” (KPIs) which are relevant to your business. This may include a system of measuring the effectiveness and efficiency of employees and business procedures and systems generally.
14. Risk management. For example:
- What is the impact on our business if a major supplier ceased trading?
- What is the impact of a major customer ceasing trading?
- Are systems in place to prevent fraud?
- Are insurances adequate?