These next few months will be a difficult time for many firms large and small, so what can you do to help ensure your firms survival?
Not all firms will be hit the same way…..
Cashflow is very important in these uncertain times, look at ways to free up your financial resources so that you are not consumed by fire fighting a financial crisis and are free to keep your attention on maintaining sales
According to the US National Bureau of Economic Research a recession lasts on average 11 months so how will the decisions you make now affect your firm in the future? Short term you may have to make some tough decisions but slashing of costs, capital expenditure and staff is more likely to damage your customer base, will hit your bottom line and will in turn make recovery far harder in the long term.
Avoid cuts that would affect your most valued customers or most productive areas of your business.
Your customers will probably also be struggling, so what can you do to help them buy your product? Focus on existing customer relationships and retain your existing customers.
Look at what your firm has to offer, how can you outshine your competitors? The need for your product is still there so why should someone buy your product rather than your competitors? What are your unique selling points? What do you need to adapt?
The value of assets are falling. Are there any opportunities to acquire assets that would enhance your business? Competitors, distribution networks etc. Also look at other markets not all economies throughout the world are in difficulty.
Tough decisions will have to be made but avoid dismissing or failing to recruit staff. Your best people may end up with your competitors and conversely your competitors staff may now be available for you to recruit!
Motivate your staff. You may have had to let some staff go but those that remain should feel empowered and motivated. Keeping your staff happy will make it easier to hold on to them and they are therefore less likely to leave when conditions improve.
Don’t be tempted to cut back on your R&D budget. Look for things that could grow your business. New products, and ideas developed now could be your way forward to recovery.