:: A few fundamental steps to recession proof your business
In this current economic climate, more than ever, the spa offers a refuge, an escape from the daily grind. As news of a recession permeates the daily news, all the "talk" seems to be making a bad situation even worse. Consumer confidence and decreased sales have already impacted small and large businesses alike. Forecasts suggest, we will all continue to tighten our belts in response. Fortunately, there are signs of a small increase in consumer spending and we can take a few fundamental steps to protect our business during a recession:
Stay Calm, Don't Panic: History tells us that economic downturns will not last forever, prosperity will return. Your business' survival and potential opportunity to grow during and after a recession generally depends on your ability to effectively navigate your business through this period.
Seek the help of outside advisors: Get in touch with the people you trust and respect for their expertise to help you in your thinking, planning and implementation of your business activities.
Financial Management - Diligently monitor your cash flow: Cash flow is the life blood of
any business. Prepare a cash flow template that projects your cash requirements for the upcoming three-to-six months. Weekly, update your business results. Your financial health-performance will dictate what business activities need to be addressed first, second and so on. Most important, recession-proof your business, by keeping tabs on your personal credit rating as well as your business one and do what's necessary to keep your credit ratings in good shape.
Review expenses & control inventory: Tightening your belt in order to weather the downturn makes practical and financial sense. Eliminate nonessential expenses as much as possible.
Separate "needs" from "wants". Can an item or service be sourced at a better price? You will be surprised how subtle adjustments can be made without compromising on the quality of your services or loss of sales.
Client Management - Make clients your priority: Your customers are your life line in any economic climate. In a downturn, they are what keep you in business. It is not a matter of exceeding customer expectations, but guaranteeing that your customers are never disappointed.
Do not lose sight of what matters most - keeping customers happy. Happy customers will propel
your business through the downturn and create a solid foundation from which to grow in the future. Brush-up your customer service standards so that you keep your current customers and your are
also in a perfect position to gain new customers.
Marketing Management - Continue marketing & diversify your customer base:
Studies show that businesses that maintain or increase their marketing and public relations efforts during tough economic times consistently outperform those who slash/cut their marketing efforts. Consumers are restless and looking to make changes - you need to help them find your services.
In fact, if possible, step up your marketing efforts.
Human Resources Management: Mobilize your people - Keep morale up. Economic downturns are scary times for employees. Remember, employee motivation can rapidly deteriorate in times of economic uncertainty, so maintain good communications. Now is a great opportunity to take the necessary steps to improve your employer-employee relations and staff skill-sets.
