i n f o @ l o m a s v f d . c o m | Accountants Based in Tunbridge Wells | 0 8 0 0 4 5 8 0 3 8 9 | © 2008
Credit Crunch
The stock markets are plunging with talk of a global recession.What this may mean is that the economy may shrink.Loosely translated it means companies are not expected to grow and if they are not growing they are shrinking.When firms shrink they shed staff.Unemployed people lose their homes and have no money to spend. BUT what does this mean for you? In reality some people still have money to spend but they are nervous and thay lack confidence.They do not know what is round the corner.Some people have more money than others such as the elderly and the rich.Try and make them your target market.Target wealthy post codes and deliver the products they want.
In tough times you will have to be more proactive. Devise a special offer and promote it as cheaply as possible.Use your customer base, use telesales or targeted leafleting, use email marketing or internet ads. Make use of the internet optimise your website so that you come top in google without having to pay for google ads. Newspaper ads or yellow pages still work for certain sectors but for many this is too expensive and non-specific. Find out where your leads are coming from and you will know.
A boards (or site boards) are great - tie balloons to them occasionally if appropriate.
Do you know which sectors and products of your business are profitable? Find out and drop the unprofitable ones. Do you know what your average order size is? Try and sell more and increase it.
Is one line or product in great demand then try and put your prices up.
Is your business profitable do you know this on a month by month basis? Consider exiting if it is continously unprofitable. Remember you cannot flog a dead horse.
Companies will go bust, so keep tight on your debtors and don’t get caught with a bad debt. Send a solicitors letter early. Internet firms charge only a couple of £ for these.
Are you forecasting your cash flow ahead month by month to see if you have any cash shortages.You have 2 choices increase sales or reduce costs.If you have a shortage cut back where ever possible.Lool for slack and waste and remove it. Put staff on short time if it is in their contracts.Talk to your bank well in advance to line up funding.
Lastly great service and value always sells, if you combine this with the above you should be okay.
