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15 Steps to Recession-Proof Your Business! |
The author of this article, Miguel Mendez, Jr., is an Attorney, Speaker, and Business Growth Expert. For 22 years now, he has represented and
The tide of a recession may be rolling in.
You may already be experiencing the ripple effects in your own business. That's not surprising, as many business owners and managers are reporting that business has, in fact, been slowing down.
When the impending tidal wave of a recession or 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. Yes, start paddling..., and fast!
It is critical for Business owners and Managers to take definite steps during these times. Your goal should be to prevent serious economic damage and potentially devastating losses when the threat of a business slow-down, or recession looms.
You may erroneously think though that the slow-down in the economy is only affecting an unrelated segment of the business world. Be careful with this faulty analysis though. For instance, many of my business clients are reporting to me that the down-turn in the real estate industry nationwide has had a negative ripple effect even on business that is not related to the real estate market.
Business Owners and Managers claim that business is slowing down and profits are dwindling, too. Newspapers even report that consumer spending overall across all segments of society is noticeably down, and that business is not as brisk as it was just one 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 in your marketing efforts.
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 as a routine. Not now should be your motto.
6. Keep operating expenses stable, and under your watchful control. Review your financial reports daily, or at the very least, weekly. Monitor Cash Flow particularly.
7. Review those Key Strategic Markers that you have in place for your business sales. Monitor your sales daily using your Key Strategic Markers. Stay on top of your sales efforts. If your sales are trailing off, take action. Develop a list of action steps that your staff can take daily and weekly to specifically address any sales slow-down that is revealed by your Key Strategic Markers. Your goal is to aggressively seek out more 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. This line-item elimination process goes for even some of your customers and clients. Ask yourself about your customers and clients, Are any costing me more than the profit my business is receiging from them? If so, dump them. Or at least, refer them out to your associates or affiliates who may welcome any business, good or bad. A good tip is to try and work out a referral fee or exchange of other business that could benefit yours.
9. Free up Cash Flow. Now. Yesterday. Right away! Cash Flow serves as a protection..., a boat with oars. Review your outstanding Accounts Receivables immediately. Consider developing a stepped-up, more aggressive collections system. You may even consider offering your customers small discounts for paying their accounts early, or for paying in full rather than over time.
10. Ask your suppliers and vendors for more time to make your payments on your ongoing accounts. This is negotiable. You've just got to ask.
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. And if need be, do it sooner. Your particular economic survival may warrant taking more drastic action.
12. Consider target-marketing discounts on your products and services to your loyal customers and clients.
13. Keep your overall prices stable. Resist the temptation to lower prices. Remember that lowering prices across the board will likely cause Cash Flow and profits to slide down even further as a result.
14. Use the economic down-time to design even more profitable Business Operating Systems to more effectively run your enterpise. Use the time also to train your staff to follow your newly designed operating systems.
15. Implement. Don't ignore. Take definite action by implementing and following these 15 steps as a routine fucntion of your Business Operating Systems.
Even when facing the wave of a looming recession, or economic down-turn, your business can survive and remain strong. The key is to start swimming. The 15 Steps are like a paddle that you can reach for 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. For if you do, the small ripple effects that you are feeling now may soon turn into a tidal wave of destruction.
Follow the 15 Steps above and recession-proof your business now!
This article is an excerpt taken from the MasterMind Business Growth Ezine, a monthly FREE publication authored by Miguel Mendez, Jr., Esq.
Copyright 2008. Miguel Mendez, Jr. All rights reserved.
The author of this article, Miguel Mendez, Jr., is the Owner of MasterMind Group International. He is an Attorney, Business Growth Expert, and Speaker. Miguel Mendez has represented and performed consulting services for start-up and fast-growing businesses for over 22 years. For more Business Growth ideas and FREE articles, go to http://www.mastermindgroupinternational.com
And for that SPECIAL BREED of Business Owner, Entrepreneur, Manager, & Professional seeking EXPONENTIAL Business Growth and Increased Profits! The MasterMind Business Growth System is for you! 310 page interactive workbook downloadable NOW. Comes with 8 CD audio training, forms, checklists, and an M2 Strategic Session with Business Growth Expert, Miguel Mendez, Esq. Learn more now by clicking on http://www.mastermindgroupinternational.com/BGSystem.html
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| From Internet Date : 2009-02-06 |
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