As the economy slows down and uncertainty prevails in the future of the business environment, it is wise to take action and ensure the sustainability of the business. This is your opportunity to grow your business during tough times. Follow our 12 tips to grow your business during these tough times. Use the slow-down period to make strategic, structural and system changes that will not only get you through the tough time but also stand you for better results when the cycle turns.
The key tips to survive these challenging periods are:
- Review the strategy and focus on consolidation and viability,
- Ensure the competitive advantages remain in place and strengthen them,
- Safeguard customers stay loyal by improving service levels,
- Increase marketing/sales activity by networking and using affordable online tools
- Reduce slow/ non-moving stock and drive increased cash flow (clearance sale in payable COD)
wastage/duplicationin organisational structures and systems (streamlining)
- Reduce operational costs by focusing on their value and risk profile (eliminate the non-essential “nice-to-have”)
- Assess the debt in the business and take appropriate action to manage its potential cost (optimise/reduce based on capabilities)
- Implement strict credit policy and collect outstanding debtors promptly (settlement discounts/proper admin)
- Develop a budget and let it be your road-map for expenditure and financial discipline
- Keep morale high and staff committed and motivated despite the tough times (teambuilding)
- Take some time to work on the business and stop working hard doing more of the same
Get a second opinion
It is advisable to ask for help from outside professionals who will provide an objective opinion on these matters and not be unduly influenced by the situation or the parties involved.