Expense blow outs are inevitable in business. Reducing expenditure should be looked at regularly to help strengthen your business.
Strengthening your business doesn’t just involve financial management, but also includes strategies to retain and broaden your customer base, market your business affordably, keep high morale among staff and improve your business practices and processes.
To Strengthen your business during downturn or unforeseen events, you should consider the following:
Provide your customers with what they want. If you provide quality customer service, your business is likely to retain your existing customer base.
Customer service is not just about the initial sale, it’s also meeting customer expectations, building a relationship with your customer/client and exceeding expectations in the after care and maintenance of that customer.
This also means you have a greater chance of keeping and increasing your client base.
It is particularly important to find ways to retain your existing customers and providing good after sales service is one of them.
I hate having to clean up after a trades person has left but if they use drop sheets or clean up after the job is done that impresses me. You have no idea how something so small can have a huge impact with your customers.
Reviewing your marketing strategies can help you come up with new ideas to increase sales and find better ways to market your business.
Focus on communicating your competitive advantage and market that strength to benefit your customer.
But don’t forget to measure the effectiveness of your marketing. It’s no use marketing to your client base on social media if they have no online presence and never forget word-of-mouth marketing. Concentrate on your competitive advantage and market to benefit your customer.
Managing your cashflow also helps your business viability and financially stable. Excessive costs within a profitable business can cause it to fail so managing your cash Is important and Reducing expenditure and overheads is one main way to manage your cash flow.
Bookkeepers, Financial planners and Accountants help with unforeseen downturns in business. Find out what support services are in place to help your business survive. Consider
It’s never to late to plan for unexpected events. Reducing expenditure is one of the key items that should be monitored and curtailed regularly.
Keeping tabs on your income and expenditure is good business and Planning for the future is excellent business.
Mental “Business as usual” can give you insight into what you need to plan and provision for in future.
For more information on crisis response plans www.businessaustralia.com