The business mood is increasingly sombre. The end doesn’t seem in sight. While plans for stimulus economic packages have been announced, they are stop-gap measures. Will the dark clouds pass? Here we share four top tips to help you survive a business slow down. Review your existing business strategy to incorporate them.
1. Fortify your cash reserves
Cash is king, especially in tough times. Without it, the business may find itself on ‘life-support’ in the form of borrowings or credit extensions. In themselves, they are fine. But such facilities should be used to expand the business instead of meeting regular expenses. A rock-solid cashflow forecast ensures your income outpaces expenses. To this end, review customers’ terms of payment, invoicing system as well as your relationship with suppliers.
2. Weed out inefficiencies
When the engine of growth is running at full speed, it can be difficult to spot squeaking parts. Even if you do, it is impossible to stop the machine because it will impact production. In a slow down, there is time to either oil the parts, replace them or plan for a different way of doing things. This is probably the most productive thing to do in a slow down. It gears the business up when demand starts revving again.
3. Upsize the skills, downsize the numbers
With a lesser workload, there is time and energy for the team to acquire new skills. Explore the range of government incentives and initiatives supporting this. In addition, the slow down presents a natural circumstance to review your manpower needs. Turn to innovation to automate relevant business functions.
4. Broaden your sales pipeline
Almost everything you touch turns to gold until the pipeline dries up. A slow down will force you to review your sales and marketing effort. It is a good time as well to start and nurture new business relationships. If you have a long sales cycle, it’s probably good to get the ball rolling now.
It’s not all gloom and doom in a slow down. There are things you can do to survive and thrive. To learn more, connect here.
