Be Prepared

22nd September 2011

Like all the best boy scouts, now is the time to prepare for what I expect to be a fairly bumpy ride for the next 6 months or so. For those who read my blog regularly, you will know that I am generally a very optimistic person, but recently with all the bad news coming in from Europe, I suspect that we may well have some fairly tricky times ahead.

So what can you do to keep your business secure? First, make sure you have planned and written your cash flow for the next 15 months. It is probably worth looking at 2 or 3 scenarios, and see what effect it may have especially when looking at what you consider to be a worst case forecast. You can then identify any particularly bad months, and start to plan for how you will negotiate your way around these (e.g. extended overdraft or bank loans).

Secondly, look in detail at your marketing strategy, and see what you will need to do to keep yourselves as prominent as possible, whilst keeping to your budgets. Remember you will be competing more than ever for “wallet share”, because people are likely to tighten their belts even more in the immediate future.

Thirdly, look at your costs, and be realistic about what you can afford. Look at all aspects of your business, and see which areas if any, you can find savings on. Don’t cut costs if it will affect the quality of your service or products.

Finally, look at your pricing structure. Don’t be tempted to fall into the discount, low end of the market, as that is sure to lead into a price war. Look at the top end of the market, where there are still people with money, and find ways to add value wherever possible. All in all, plan ahead, and don’t stick your head in the sand, hoping all the “nasty things” will go away.

---

Comments are closed.