Friday, March 6, 2009

25 Ways to Help Survive The Recession

Growth masks problems, and many of these things you should be doing all the time, recession or boom times.

1. Be responsive – innovate – look for opportunity – look at trends in your industry. The federal government’s stimulus package is putting money into lots of things, including education, green technology and public infrastructure. There is also a safety net for those who have lost their jobs. What opportunities are there for your firm?

2. Cash flow, cash flow, cash flow. Although an appropriate amount of debt can help you grow your business, too much debt creates too much risk, due to negative effect on cash flow. Do REALISTIC cash flow projections and update them at least once a month. It is possible to survive decreased profits, but you can’t survive a continuing negative cash flow.

3. Keep good, accurate, timely books and pay attention to the trends – identify problems in advance.

4. Lower costs. Negotiate lower lease rates, or even rent relief for a few months. Look around…do you see empty store fronts? You may have more negotiating power than you think.

5. Analyze your greatest expense and do what you can to lower it. If sales are slow you may need to lay off staff – don’t wait too long to take action.

6. Look at every expense to lower it. Even small savings can add up.

7. If you have cash and you are looking for equipment, you may be able to find huge bargains now.

8. Focus on the customer – if you are less busy, you have time to give A-1 platinum-level service to each of them. If they stick with you, they are worth their weight in platinum!

9. Sell, sell, sell – get out there – remember to sell the benefits!

10. With the extra time available from decreased demand, sharpen up those marketing materials, website and selling skills. Analyze your marketing and advertising expenses and focus on the ones that provide a return – the ones that work.

11. Get on social networking sites like Facebook, MySpace, Linked In, BizNik, etc.

12. Network!

13. Talk to customers, find out what they need and find a way to provide it if possible.

14. Restructure debt to create a more positive cash flow.

15. Educate yourself – learn about financial statements and how you compare to industry standards – (often marvel at how ignorant most small businesses are about their finances – now is the time to learn the meaning and importance of a balance sheet, P&L and ratios).

16. Training opportunities are everywhere – some are free and others are quite reasonable.

17. Shop around for bargains!!!

18. If you have the cash flow, negotiate discounts for paying upon delivery.

19. It may not make sense to totally cut advertising – you can continue to build your brand while other companies retreat.

20. If something isn’t selling, mark it down, move it out and get the cash to buy newer, fresher inventory.

21. Get a handle on A/R – don’t let them get out of control, you need the cash to operate on. Invoice immediately, don’t wait until the end of the month.

22. Listen to your employees – they are a great source of information – ask them for ideas on how operations can be improved and expenses curtailed.

23.Negotiate better rates with service providers such as accountants and attorneys.

24. Negotiate better rates for employee benefits such as health insurance. Find a cheaper credit card processor.

25. GET SOME HELP! A lot of people come to us looking for grants – the best grant you’ll get is a grant of time and expertise from the WBCs, the SBDCs and SCORE.

Monday, March 2, 2009

Hello!

We are all wondering about this recession...have we reached the bottom, and how long will it take to recover? There seem to be a lot of differing opinions out there...the fact is, nobody really knows. What can you do to help your business weather the storm?

Unfortunately, some businesses may not make it through, but we are still seeing people starting businesses, some businesses haven't been too badly impacted, and others are taking this opportunity to reinvent themselves.

Cutting costs is the first place to start, but concentrating on marketing and sales will help generate the revenue your business needs. Revisit your marketing plan and take a look at each of your marketing efforts to see if they are effective. If you find yourself with extra time, take the time to update your brochures, website and other marketing materials. This is also the time to ensure the very best buying and after-the-sale experience for your valuable customers.