'If you fail to plan, you will plan to fail'. Another quote to inspire us all to always regularly review where our business is going and to identify what can be done to ensure that it stays on track. Managing a business in a downturn can be a rollercoaster activity but there are some best practice principles that if adopted can help to ensure that you have the plans in place to manage through this difficult phase.Our top tips are:
*Review all expenditure and keep a tight squeeze on cash leaving the business. Ensure all expenditure is aligned to customer or business generating needs.
*Work with your top customers on understanding their business and their needs. Better to be in a proactive situation to respond rather than reacting to a competitor's offer.
*Accelerate any product or service development plans. New products will always do well in a recession as they help to build and protect market share.
*If you are feeling the crunch on cash flow then talk to your bank and suppliers early. Again, nobody wants to be comfronted with last minute surprises.
*At the same time discuss continuity of raw materials or products from suppliers. Ensure that they are financially healthy, and if not, identify additional key suppliers to minimise business risk.
*Do not get the business at any cost. Know your margins and ensure that you communicate robustly the value of the proposition to your customers. Differentiating yourself from your competitors is essential in a price-driven recessionary marketplace.
*Work with your top customers on understanding their business and their needs. Better to be in a proactive situation to respond rather than reacting to a competitor's offer.
*Accelerate any product or service development plans. New products will always do well in a recession as they help to build and protect market share.
*If you are feeling the crunch on cash flow then talk to your bank and suppliers early. Again, nobody wants to be comfronted with last minute surprises.
*At the same time discuss continuity of raw materials or products from suppliers. Ensure that they are financially healthy, and if not, identify additional key suppliers to minimise business risk.
*Do not get the business at any cost. Know your margins and ensure that you communicate robustly the value of the proposition to your customers. Differentiating yourself from your competitors is essential in a price-driven recessionary marketplace.
If you want to access more top business tips then please download our latest newsletter from our website on the link below.
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