5 ways to drive growth in economic slowdowns
The prospect of an economic slowdown seems inevitable. Rather than surrendering to circumstances, the shrewd entrepreneur should see beyond the gloom. After all, Microsoft started and grew in very difficult circumstances. Managing a slowdown is an inherent part of business management. Hence, embrace it and have a strategy to manage it. Let’s look at how you can do this here.
1. Fortify your cash reserves
In a slowdown, you may still be receiving payments for work done or goods delivered. The pipeline hasn’t run completely dry. With the cash reserves, keep an eye out for opportunities that may appear amidst the slowdown.
2. Review how the business is run
It may be difficult to detect inefficiencies in the business when it is doing well. You are either too busy or too optimistic of further growth prospects to think of inefficiencies. A slowdown is a great opportunity to take a hard look at the costs of running the businesses, weed out inefficiencies and position the company for the impending upturn.
3. Nurture customer relationships
When you are busy closing deals and delivering the products or services, you may have little time or energy to have engage with customers. Whilst they may understand this, it is not something you would want to take for granted – the next, new, big company could be just around the corner. But in a slowdown, you have the opportunity to have ‘coffee chats’ with them. Take advantage of this to demonstrate your commitment to their success.
4. Reach out to new customers
Building a sales pipeline takes time. Depending on the industry or category you are in, the sales cycle may take a while to materialise. In a slowdown, you have that time. Building trust doesn’t happen overnight. Today, customers are spoilt for choice. They may not be in a hurry to take the relationship to the next level.
5. Stay lean and agile
When you’ve done a review of your processes, you would have discovered the inefficiencies. Weed them out before you get busy again. Once done, maintain that shape.
Choose Sydney Accounting
To find more about how you can keep your business thriving in the midst of economic slowdowns, contact a member of our friendly, expert team at Sydney Accounting. We’ll be happy to help with any queries that you may have, as well as setting your company on a path to recovery and success when it matters most. Call now on 02 9810 3222.