Recession Proof Your Business

  1. Diversify the products and services you offer with the intention of creating additional sources of cash flow. The object is to create multiple unrelated revenue streams.
  2. Create a detailed budget for planning purposes. This is a prerequisite to reducing expenses.
  3. Reduce inventory levels to the extent possible in order to reduce interest expense.
  4. Consider establishing direct barter relationships or joining a barter exchange in order to conserve cash. Items most commonly bartered include accounting and tax services, legal services, advertising, office space, office supplies, security services, and postal boxes.
  5. Re-evaluate your credit granting policy in order to minimize credit losses and late payments. Hire a good collection company if necessary.
  6. Renegotiate vendor agreements asking for lower prices and longer payment terms.
  7. Reduce debt to the extent possible. Don't buy using credit to the extent possible. Credit card debt is extremely expensive.
  8. If you will need financing, be certain to arrange it before you really need it.
  9. Focus on customer/client retention. It is far more expensive to obtain a new client than to retain existing clients by providing excellent service.
  10. Consider bringing in an investor who can assist in bringing in new customers/clients and sharing any financial burden. Sometimes owning a smaller percentage of a more profitable business is a wise decision.
  11. Consider a merger for the same reasons as #10 above.
  12. If possible, sublease some of your space and/or consider a virtual office as an alternative. Rent is usually one of the largest expenses for most businesses. Renting desks to small business owners can often save big dollars.
  13. Reduce your advertising costs by maximizing the use of low cost promotional advertising products.
  14. Focusing on priorities as opposed to long-term projects or goals.
  15. Evaluate all insurance policies for adequacy and cost. Contact an independent business broker for competitive bids.

Ideas to Expand, Protect. and Improve Your Small Business

Cross-Selling and Upselling

Characteristics of Successful Business Executives and Entrepreneurs

 

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