Last week we agreed that cash flow is the lifeblood for any business. Now let’s consider what may happen in our businesses as a result of tougher economic times.
• Your customers may need to re-prioritise where they’re spending money, so you may notice your customer numbers drop
• You might start to receive fewer enquiries or leads
• It might become more difficult to make sales because the customer must see how the value of your product or service significantly outweighs the price
• Your customers might start making fewer purchases from you and spend less each time they do
• You might feel the pressure to reduce your prices to attract new customers and entice existing customers back
• Your suppliers will be feeling the effects of the downturn and are likely to put their prices up, meaning you have to pay more for your stock
• Then you have to deal with rising interest rates, cost of fuel, and even increased wage costs
It’s a scary thought and it’s important to plan for these economic downturns and know how they might affect your business. Over the next six weeks, we will look at some key strategies you can be implementing now to minimise the impact on your business.