How to position your business in difficult times
Running a business successfully can be a challenge and even more difficult when economic times are hard.
But rather than viewing the hard economy as a bad thing, look at it as a chance to position your business strategically, so you can not only survive the tough times, but flourish during that period.
Below are business strategies to position your business from any type of challenge that comes its way:
1. IMPROVE YOUR CASH FLOW: Typically in tough times, the most significant problem faced by many businesses is poor cash flow. Ideas to improve your cash flow include:
A. Collecting outstanding debts
B. Prepare regular cash flow forecasts
C. Measure and reward the behavior of your employees that improves cash flow
D. Make full use of your terms of trade
E. Reduce stock levels
F. Replace slow-moving and obsolete stock with stock that has a faster turnover
G. Sell unnecessary assets
H. Seek finance on reasonable terms from external sources.
2. FOCUS ON THE CORE: If you have divided your business into diverse areas over the years to enhance your market reach, it might be time to reform and concentrate on the center of your business and subcontract the rest.
Calculate what is and is not functioning well for your business and put more hard work into what started you out as a flourishing entrepreneur.
It is very essential to get in touch with your core business and ensure that it persists to meet the varying requirements of your customers.
3. TAKE STOCK OF WHERE YOUR BUSINESS IS AT: In tough times, you should adopt a risk management mindset and take stock of your business more broadly.
You should therefore: Conduct research to find out if your customers and competitors are also experiencing tough times and if so, how are they responding, review your business operations and look for improvements.
4. TAKE ADVANTAGE OF OPPORTUNITIES: Do not turn a blind eye to opportunities that may emerge that are consistent with your strategic direction and can be properly funded.
If an opportunity does emerge, it may be necessary to adjust your business plan and budgets to accommodate it.
In other words, in tough times you may have to drop activities from your business plan and re-focus your budget to take advantage of an opportunity.
5. IMPROVE SALES, DISTRIBUTION AND CUSTOMER SERVICE: The last but not the least, concentrate your support on those areas of your business strategies that fetch in customers and keep hold of them.
Build up cross-selling thoughts to assist your sales force, employ procedures to make certain that customer service goes over and further than customer prospects, and augment your allocation processes so that your service or product is distributed as promised.
Create techniques that make it simpler for every person to carry out business with you.
In Conclusion: The world has faced hard economic times before and many businesses have survived and even flourished during that period.
The businesses that stand, are those guided by an entrepreneur who comprehends the value of their business and is practical in meeting a challenge head on with encouraging and inspiring thoughts.
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