Making most of recession lessons

Oh no, not another ‘how to survive the downturn’ checklist.  Well, yes and no.  The advice below is obviously pertinent to these tough times, but you know that it’s actually what your business should be looking at all the time.   No one would chose to go through a recession, but it does help to concentrate the mind about the fundamentals involved in running a successful small business.

Apologies in advance for stating the obvious, but here are a few tips to help you stay fighting fit:

Keeping your customers happy…and loyal

Business growth is dependent on gaining new customers and that’s tough:  first you’ve got to find them and then you have to persuade them to give you their money.  But you should be making similar efforts to reinforce your relationships with existing customers.  You shouldn’t take them for granted; you can bet that they’re being wooed by your competitors.

Your customers should know that you care about them and that their business is important to you.  They’re probably experiencing the same pressures as you, so consider ways of easing their pain.  Maybe it’s a matter of offering incentives and discounts, or exclusive products and services for repeat customers – anything which helps to preserve their goodwill.

And a recession may be the best time to re-evaluate your Web efforts and strategies.  Are there opportunities for you to expand your business via the Web?  Can you develop a customer loyalty programme online? 

Maintaining cash flow

You’ve got to keep your customers sweet, but that doesn’t mean that you can let them get away with late payment.  Unpaid bills are the usually the trigger for small business failure – in or out of a recession – so you must ensure a rigorous approach to issuing invoices and getting the money in.  Don’t be afraid about talking tough with them: there’s nothing wrong with introducing penalties for persistent late payers.

The best bank for your buck

You need to cut costs wherever you can without damaging the quality of your business delivery and you should start by assessing the value of your professional support, particularly your banking arrangements.

Do you want free day-to-day banking, or are you after good interest rates.  Can you access your account online and could you get a better overdraft facility elsewhere?

Networking

Like it or loathe it proactive networking is now deemed virtually obligatory for senior management.  What professional or business groupings do you or your colleagues belong to?  Are you taking advantage of opportunities – at a local and national level – to meet potential collaborators or customers?  And don’t forget about revisiting your old clients or leads:  why not send them a brief hello and an update on your business?

What about electronic networking: do you blog, podcast or participate in online business discussion forums? This is a key time for you to provide expert commentary on your own sector and on wider business issues.

And think about what is happening at your own back door.  If you’re in a serviced office then there are probably other cohabiting small businesses which might be worth getting to know.  Ask your centre manager for details of in-house networking events.

Staff Motivation

The success of your business is dependent on the efforts of your workforce.  You may be forced to cut staff and this could mean more work for those who stay.   They will be motivated to make the extra effort through your leadership.

Now’s the time – and you should have been doing this before – to demonstrate your concern for your employees’ welfare.   You may have to introduce wage freezes or temporary pay cuts and the Christmas party may have to go, but you can make sure your people know you appreciate them.

Above all think positively; the recession will end.  It’s up too you to improve performance wherever you can and put yourself in a position to get ahead when the climate changes.