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10 Recession Strategies that Work
July 6, 2009 | Leave a Comment
1. Assess what is really working for your business and put your money where it counts the most. If you are not measuring your efforts in all areas, you could be wasting valuable resources.
2. It is a time to spring clean your closets of all the dead weight accumulated over time. Only keep that, which is adding value. This applies to suppliers, customers and staff.
Evaluate your suppliers; are they gouging based on a long time relationship or do they remain competitive? Changing suppliers just based on price can cost you in the end but changing for a better service and product at a competitive price could save you in the end.
Stop spending on customers that will drain your bottom line.
Is your staff productive and committed? Hang on to your talent and get rid of your ineffective staff and those that will not add value going forward.
3. Stay vigilant to your competition it is probably changing. Some may close down; others may go into defensive mode. This may present new opportunities for you to gain market share.
4. Look at your expenses and cut down on the fluff and luxury expenses. I am sure that your customers will understand if you tell them that in order to continue giving them great service through the recession expensive restaurant lunches are on ice. After all you want to be around when things pick up again.
5. Do not change strategies out of fear; change them only if they are not working. A long-term strategy should sustain future growth where a short-term strategy may be riskier. Have your long-term horizons changed with the recession? If not, you may need to streamline your business and assess the degree of risk acceptable in your short-term strategies to achieve your long-term goals. You do not want to sink your ship due to shortsighted panic reaction.
6. Stay alert to your customer’s needs and the market changes. You do not want to be caught sleeping. Do you have contingencies plans; do you have a plan B if plan A fails? You need to consider (quickly) the changes and genuine threats and then react accordingly. Your decision may be not to act which could the correct decision if you geared up to deal with what is coming your way.
7. There is still some new business out there. Some businesses and people have benefited or continued to grow in spite of the recession. Do not give up on marketing and advertising just do it smarter.
8. Keep your eye on the ball but make sure your peripheral vision is sharp. Companies closing down present opportunities for new markets and new areas to diversify.
9. Ensure you remain competitive. Do not heavily discount yourself if you do not have the reserves to carry you through or could damage a position/image that you spent years building.
Bulk discounters will always discount. Is that what you want to become…if it is great go for it, otherwise it may cost you in the end. It will be a position that will be hard to recover from because increasing prices, without seriously upsetting your customers, to a pre-recession level will take a long time.
10. Time is money. In a recession, you will have to work harder probably for less. Do not spend hours in meetings debating: by the time you have finished a faster, smarter business will snap up the opportunities. Go in with an agenda driven towards decision-making. Strong leadership will count.
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