Having taken the step of joining the Local Success Network, it is now time to look at things to avoid if you want to be successful!
These steps are a starting point for to help ensure the future of your business:
1. Mind your cash flow
Understand exactly what your finances are telling you. Issue invoices promptly and chase up debtors; don't buy more stock than you need; negotiate longer credit terms with suppliers; shorter ones for customers; fill up gaps in your order book; and keep in touch with your bank!
2. Cut your costs
Look for savings in every part of your business. Do you turn equipment off at night? Is every business journey necessary? Are you taking full advantage of your tax allowances?
3. Credit check new customers
It may take only one major customer to go bust to jeopardise your business. Protect yourself by conducting credit checks on new customers and agreeing clear credit terms up front.
4. Focus on retaining customers
When finances are uncertain, consumers cut their discretionary spending, and so do all you can to keep your customers. Loyalty schemes, small discounts and regular communications are important ways of letting your customers know you value them.
5. Provide outstanding customer service
Consumers appreciate businesses that give them more for their money. Efficient service, fast delivery, flexible payment terms, and so on, can persuade people to spend with you rather than a competitor.
6. Increase your marketing
When competing for a smaller pot of money, it becomes more important than ever to tell people why they should come to you. The website, flyers, postcards and calls remind people of what your Business has to offer.
7. Concentrate on products and services that sell
Don't put your efforts into trying to sell things that are untried or that few people will buy; stick to profitable favourites. Don't be tempted to slash prices either as you will be giving away your profits.
8. Train your staff
Your staff are one of your greatest assets and could be the key to retaining customers and keeping your business running. Training is important to their personal development and the productivity of your business.
9. Sell on-line
An on-line sales or marketing channel will expose you to a larger marketplace for minimal cost. Plan and resource on-line selling properly by including providing payment security, meeting orders swiftly to attract visitors.
10. Recession survival by Streamline your operation
Consider moving to smaller premises, or subletting your existing space. Sell off excess equipment and look at staffing - are your people concentrated in the right areas? Will flexible working be more cost efficient and finally, if considering redundancies, remember that it's bad for morale and replacements may be hard to find when business picks up, but if it's necessary, do it right.
The next stage is a health check, taking stock of where your business is and what needs to be done to move ahead.
To your continued success,
These steps are a starting point for to help ensure the future of your business:
1. Mind your cash flow
Understand exactly what your finances are telling you. Issue invoices promptly and chase up debtors; don't buy more stock than you need; negotiate longer credit terms with suppliers; shorter ones for customers; fill up gaps in your order book; and keep in touch with your bank!
2. Cut your costs
Look for savings in every part of your business. Do you turn equipment off at night? Is every business journey necessary? Are you taking full advantage of your tax allowances?
3. Credit check new customers
It may take only one major customer to go bust to jeopardise your business. Protect yourself by conducting credit checks on new customers and agreeing clear credit terms up front.
4. Focus on retaining customers
When finances are uncertain, consumers cut their discretionary spending, and so do all you can to keep your customers. Loyalty schemes, small discounts and regular communications are important ways of letting your customers know you value them.
5. Provide outstanding customer service
Consumers appreciate businesses that give them more for their money. Efficient service, fast delivery, flexible payment terms, and so on, can persuade people to spend with you rather than a competitor.
6. Increase your marketing
When competing for a smaller pot of money, it becomes more important than ever to tell people why they should come to you. The website, flyers, postcards and calls remind people of what your Business has to offer.
7. Concentrate on products and services that sell
Don't put your efforts into trying to sell things that are untried or that few people will buy; stick to profitable favourites. Don't be tempted to slash prices either as you will be giving away your profits.
8. Train your staff
Your staff are one of your greatest assets and could be the key to retaining customers and keeping your business running. Training is important to their personal development and the productivity of your business.
9. Sell on-line
An on-line sales or marketing channel will expose you to a larger marketplace for minimal cost. Plan and resource on-line selling properly by including providing payment security, meeting orders swiftly to attract visitors.
10. Recession survival by Streamline your operation
Consider moving to smaller premises, or subletting your existing space. Sell off excess equipment and look at staffing - are your people concentrated in the right areas? Will flexible working be more cost efficient and finally, if considering redundancies, remember that it's bad for morale and replacements may be hard to find when business picks up, but if it's necessary, do it right.
The next stage is a health check, taking stock of where your business is and what needs to be done to move ahead.
To your continued success,
Malcolm
