Doing Business In Difficult Times

Over the past months, the recession, depression and financial crisis have barely been out of the news. While there is a wealth of bad news around the impact on businesses is very patchy and despite the media, some businesses are doing well.  Notwithstanding, there are a number of areas worthy of attention in every business.

The number one tip is do not stop marketing. When organisations feel the need to tighten their belts, it is often the marketing spend that is cut. This is the worst thing that a company can do as you become invisible to all but your most active customers. Look closely at what and where you are spending on marketing, gauge what is having an impact and only stop doing the stuff that is not creating an obvious stream of revenue and leads. While you are looking at marketing, consider some of the newer ways of reaching your market such as video or podcasts? Differentiation is key here and should be trying innovative marketing approaches to create a distance between you and your competitors.

Secondly, cut out the waste. This will mean different things to different business models.  In a manufacturing model cut work in progress to an absolute minimum. Avoid tying cash up in raw materials, stock and items that are simply waiting for the next step. In a non-manufacturing environment focus on the activities that generate an income or create value and eliminate the rest. Look for activities that waste time, such as searching for information or poor filing. There is more on this subject here.

Thirdly, take a close look at your processes. Is there a better way of achieving the same end? Are they making you inefficient, could you cut costs? In good times most companies let processes get a bit flabby so long as they get the job done. Now, however, is the right time to cut out the flab and challenge why things are being done in a particular way?

Often having an outsider look at your business and challenge the status quo can result in huge differences both to costs and income. If any of the above have piqued your interest, get in touch.