Loughborough

#22 – 16th July 2008

Don’t Panic

How is your business? Have you seen any change in orders and sales patterns in the last 9 months?

Your costs will have risen. If you use a lot of fuel, you might be starting to look at your margins a lot more closely.

The newspapers and news bulletins are full of doom and gloom. There is talk of a down-turn which may, or may not, turn into recession.

Be careful though. If you act first and think second, your cost cutting exercise could turn into a sales prevention activity. It is an easy trap to fall into.

Pause for Thought

• Are we talking ourselves into a recession?
• What steps should we take to protect our businesses if things continue to slow down?
• Can we cope?
  • Some of us are too young to have been in business during a recession.

Things to Think About

• Watch (and forecast) your cash
• Avoid unnecessary borrowing
• Treat new customers with care
  • Win if profitable
  • Keep them
  • Get paid – can they, will they pay?
• Track your numbers:
  • Keeping a close watch on enquiries, conversion rates and who is buying starts to get really important if customers are a little scarcer than before;
  • If you do not already have a set of KPI’s (Key Performance Indicators) that you review monthly, start now – and collate numbers for the last 6 months so that you can compare properly.
• Alternative products & services:
  • Be creative, what can you offer that will make it easier for people to buy from you. There may be a service or product which did not make sense before that is now worth considering.
  • Plan anything new properly – use facts and data to create realistic forecasts.
• If you have a large fleet of vans or cars, look at fuel consumption. A local company has reduced diesel spend by a substantial amount. They chose the make and model of van carefully and fitted speed restrictors set at 75mph.

 

 

 

If Business Slows Dramatically
• Speak to your accountant and bank 1st.
• Stay up to date with your creditors.
• Collect your payments.
• Build your own view of your market as it is now – make sure that you know exactly why things are slowing down.
o Diagnosis MUST precede prescription.
o Act first and think second will always work out more expensive.
• If reducing the number of staff is the only option:
o Do this professionally – getting help if required;
o Think things through – be ready for the next market change.
• Keep your sales and marketing activities running:
o Never stop selling.
• Look for further differentiation from:
o Competing products and services;
o Alternative value models;
o Ostrich tendency among your prospects.

Stay Objective
It is very easy to talk yourself into your own private recession. It will pay to keep a positive perspective – but remain objective at the same time.

 

Paul Fileman MIET CEng MCIM
Chartered Marketer
paul.fileman@talktosps.com
Tel:  01509 854447
Mob: 07969 188820
www.talktosps.com