It is a challenging time at the moment for small businesses, staying a float and ready for the New Year with all the additional expenses that Christmas brought from a business and personal perspective mean everyone is looking for ways to economise.
So, now is the time to take a good look and your business and your processes, perhaps there are areas where you could make changes to assist your cash flow.
So take action now to strengthen your business for the year ahead with our 10 recession busting tips:
Count Every Penny
Take a little time to investigate where every penny you are spending is going. It will be more than worthwhile to spend a little time on this as you will find some money you can save.
Re-evaluate your business; closely examine all the expenses you have, look at the things that have become old habits, those that just happen because they always have.
Check if you can streamline any of your processes, if you can purchase any better, if you can cut-out anything unnecessary.
The real surprise is that most businesses can cut costs without customers even noticing and without it affecting their high levels of customer service.
Show Me The Money
Your customers are vital to your business, without them you have no business, but so is the money. Money is critical to your survival, and a steady flow at that, so it is absolutely vital that you get your invoices out on time and that you get paid for the work /products you have supplied.
Good cash flow is critical for your continued survival in this difficult climate and is what will set you apart from the rest.
Very few of us like to chase our customers for payment, but a little time spent now will reap the rewards in the New Year.
Check & Double Check
In a recession it is essential that you get credit checks on all your customers. It is good practice at any time, but it is even more important in a recession.
If you have not been doing this, it is never too late to start and if you have customers who do repeat business with you, get them checked out as well because things can change in their businesses too.
Also get a credit check on your suppliers, you do not want to spend time and money promoting a product that could disappear or have an intermittent supply line.
Try to take as many of the risks of doing business away, to make your position as strong a possible.
Negotiating or Bartering
Don't shy away from asking for a better cost price from your suppliers, even if you have been working with them for many years, don't just assume, you already get the best deal you can, because you may not!
To strengthen your bargaining power try to establish your competitors selling and cost prices if possible, if you cannot get costs at least get the sales price, it will allow you to make some judgements about margin etc ready for your negotiations with your supplier.
Use all your market information to its maximum potential to assist you in reducing your buying price. If you cannot manage to get price reductions across the board on all your products, at least target your most popular selling items and get a reduction on those.
Your Current Financial Status
Always be fully aware of the current financial status of your business and how the next few weeks will impact on it, know the current outgoings and expected income.
Always communicate with your business bank manager. Try to keep in regular contact (this will vary depending on your business and its requirements), keep them informed of your circumstances and if you think you may have difficulties get their help, sooner rather than later.
Always keep to your commitments and do exactly what you say you will do, the bank will look more favourable on you and your situation.
Whatever you do "DO NOT BURY YOUR HEAD IN THE SAND!" This can be fatal.
Your Staff
Use the thoughts and experiences of one of your biggest assets, your staff. Remember they want your business to succeed as much as you do, particularly during a recession.
Ask you staff what they think, what ideas they have, ask for their input. This will make them feel more valued and part of the team and you may be pleasantly surprised about the ideas they come up with.
One or more of them may produce a great idea which may be very successful and make all the difference, if so remember to reward the person. Show your appreciation, get them involved and other great ideas will come in the future.
Be Seen & Get Chosen
It is vital in times of recession that you and your business are very visible to existing clients and potential new customers. In a recession a steady stream of marketing is the lifeblood of your business, this puts you head and shoulders above the competition, be seen and get chosen. Marketing is a vital tool at this time not a luxury, so ensure your profile is out there.
Promote The Good Bits
What is it that sets you apart from your competition, if you do not know what your USP is, then find out quickly and put it in place.
Now you have a USP that sets you apart from the competition, something that your customers like and the reason they choose you. You must now promote your USP like crazy, if some people like 'it' then lots more will also like your product or service, but remember you must keep your promises.
Remember Your Regulars
Your existing customers are very, very important, they are the reason you are still in business, so whatever you do to get new ones, do not loose sight of your existing customers and their value to your business.
Do not take them for granted, or assume they will always be there. Everyone is in the same situation and feeling the recession to a greater or lesser degree, so make them feel special and valued. It does not have to be something big or a grand gesture, just the fact you have remembered them in some small way will be enough to reassure them that they are important and valued by you.
Do not let another supplier step in and take one or more of your regular customers away, make them feel valued, provide good products and services, keep your promises and live up to your USP.
Stay Focused
Staying focused and not panicking are vitally important, you now have a list of things you can do to help yourself and your business enjoy a better year ahead.
Work through the list gradually, some things you may already have done or perhaps have been meaning to do, so this is a timely reminder. You may already be following a similar process, well great, whatever position you are in; you are helping yourself to a better 2010.
Wishing you much success, happiness and health for 2010.
Vanessa Hodge is the owner of Image Connect, a web design, marketing communications and printing company for new start up and small businesses. You can read further articles, hints & tips and more at Image Connect Websites Marketing Printing or Image Connect London Blog.
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