Have you implemented these steps to ensure you thrive in a slowdown?
The buzz around town is the impending economic slowdown. Whilst most businesses will engulf themselves in pessimism, you can layout plans to overcome, even thrive, in the much talked about recession. Here, we share some steps you can take to come out of this recession stronger.
1. Stay cash flow healthy
In a slowdown, financial prudence is key. The inflow of cash may be slow, either because sales will dip or customers are slow to pay. Hence, keeping a tight lid on your expenses is important. Some of the steps you can implement include review contracts and suppliers, explore ways to minimise wastage as well as look towards automation.
2. Fortify your competencies
They have helped you progress, from a startup to a growing business now. Focusing on what you do and deliver best is the safest way to keep sales healthy. Resist the temptation to diversify your revenue sources, especially if they require capital investments.
3. Treasure existing customers
A bird in hand is better than two in the bushes. Wise words to hold onto in a slowdown. Like you, customers may be looking for alternatives. The challenge is to make it difficult for them to consider a switch to rival businesses or brands. Make it easy for customers to interact and work with you. If you do not have a customer experience strategy, time to build one now.
4. Pump up the volume on your marketing
Hold on! It isn’t just about spending more. Being resourceful and creative are the orders of the day. Doing the same things but more intensely won’t help. Why?
In an economic slowdown, people are generally listless. Gloominess surrounds people’s minds. It is during times like this that even the smallest of sparks will be noticed. Some of the world’s biggest companies, like Microsoft, were born in a recession. They were the light at the end of the tunnel.
Above all, a review of your business’ financial health is imperative in times of economic slowdown. It forms the basis of how you will meet the challenges ahead. To initiate a review of your business’ financial status, contact us today. Call Sydney Accounting on (02) 9810 3222.