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"15 Steps To Recession-Proof Your Business!"
Miguel Mendez, Jr., Esq
MasterMind Group International
The tide of a recession may be rolling in.
You may already be experiencing the ripple effects in your business. It's not surprising, as many business owners and managers are reporting that business does seem to be slowing down.
When the impending tidal wave of a business slow-down starts to appear on the horizon, the worst thing you can do is to ignore the warnings. The dark clouds...the stormy weather... the rough wake. You've got to take action. You can't stop swimming. You must take action before it hits. Start paddling..., and fast!
It is critical for Business Owners and Managers to take definite steps to prevent potentially serious economic damage and losses when the threat of a business slow-down or recession looms. For instance, many of my business clients claim that the down-turn in the present real estate market nationwide has had a negative ripple effect even on business not related to Real Estate. They report profits are down. Newspapers report consumer spending is down, and business is not as brisk as it was just a year ago.
So what should you do?
Don't be caught off guard.
Follow these next 15 Steps, and you won't be.
15 STEPS TO RECESSION-PROOF YOUR BUSINESS
1. Don't lose what you already have. Take active steps to keep in close contact with your existing customers and clients.
2. Develop creative ideas to target new customers and clients.
3. Implement new cost-effective marketing strategies that continue to get the word out about your business, its products, and services. Constant, continual contact is the key.
4. Focus on a specific plan for improving Customer Service, and increasing Customer Loyalty.
5. Reduce some of your inventory that you are carrying. Take a hard look at this point. Many businesses are over-stocked with supplies, and yet continue to order more. "Not now" should be the motto.
6. Keep operating expenses stable and under watchful control. Review your financial reports daily or weekly. Monitor Cash Flow particularly.
7. Review those Key Strategic Markers you have in place for your business sales. Monitor your sales using these Key Strategic Markers to stay on track. If your sales are falling off, develop a list of actions that you can take daily and weekly to address sales down-turns shown by your Key Strategic Markers. Your goal is to aggressively try to increase sales, or at least keep sales stable.
8. Cut costs wherever you can. Ask yourself, "Are any products or services not returning enough in comparison to the cost of producing or providing them?" If so, you may want to temporarily suspend their production for now, at least. This goes for some of your customers and clients too! Dump those that are costing you more to service than the profit their business produces. A good tip is to refer these to your business associates or affiliates, and possibly for a referral fee.
9. Free up Cash Flow. Review your outstanding Accounts Receivables immediately. Consider developing a stepped-up, more aggressive collections system. Consider offering your customers small discounts for paying early, or for paying in full.
10. Ask your suppliers and vendors for some more time to make your payments on your ongoing accounts.
11. Re-negotiate better terms and prices on your existing contracts, leases, and any other business obligations as they come up for renewals or extensions. Sooner, if your economic situation warrants more drastic action.
12. Consider target-marketing product or service discounts to your loyal customers.
13. Keep your prices stable. Resist the temptation to lower prices, as Cash Flow and profits may slide down even further as a result.
14. Use the economic down-time to design even more profitable "Business Operating Systems" to run your enterprise, and then to train your staff to follow them.
15. Implement. Don't ignore. Take definite action by implementing and following these steps as a function of your Business Operating Systems.
Even when facing the wave of a looming recession, or down-turn in the economy, your business can survive and remain strong. The key is to start swimming. The 15 steps are like a paddle you can use to help you get out of the water..., and fast.
Take action. Review the 15 steps above. Devise a plan using the 15 steps as your guide. And once you have a plan in place, implement the steps needed. Paddle out of there!
Don't ignore the warnings, or else the ripple effects that you're feeling now may soon turn into a tidal wave of economic destruction.
Follow the 15 Steps above and recession-proof your business!
Copyright 2008. Miguel Mendez, Jr. All rights reserved.
http://www.mastermindgroupinternational.com
Article submitted Tuesday, June 10, 2008
This article has been viewed 2 times.
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