How to cruise advantageously your activity through the economic recession

It is the economic weakness, the whole economy is basically the end of phase decline.This, while the development of the economy. Economic recession, which is characterized by a low level of consumer buying (mainly from product-durable) and reduce the production company.

Although the economic downturn, while difficult it is to remove obstacles for small businesses, which to live and develop, and the slowdown of the economy, the creation of opportunities. If the company may be able to recognize the opportunity to attract more customers from the market share from their competitors. employers use the opportunity to assess the economic, development of alternative methods of doing business, a period during which growth has been carried out.

The challenge, the success of your company by the economic downturn lies in the renewal of your company in this economic reality. In particular, the owner of the company back on its core clients / customers, reduce operating costs, cash management and more active, not reactive, lead.



Here is a good practice which will help you, your company successfully manage the economic downturn:

Objective:

• to save money.
• Protect your assets.
• to reduce costs.
• to increase efficiency.
• customer base grows.

Action required:
• Do not panic ... History shows that the economic recession that is not eternal. To remain calm and rationale behavior, attention to the size of your company, the economic conditions at that time.
• concentration, you can ... the medium does not talk of recession and slowdown of economic growth to prevent them from a commercial success. This is a trap! Why? Given the economic conditions that are beyond your control. The economic downturn is on what is possible, it's related activities.
• communication, exchanges and communication! Be careful of the trap to try them too much. This is a difficult task, really live, and the development of your business only with their own efforts. Taking ideas and to help from other people (employees, suppliers, lenders, customers and consultants). Honest and consistent communication. Effective communication is a two-way is the key.
• Negotiations to negotiate! The value of a strong capacity of negotiations cannot be underestimated. Guidelines for better handling of the negotiations, and it is necessary adjustments and the size of your company's current economic conditions. The key to success is not only a way to develop a "win-win", with all parties to negotiate, but also the fact that you have a good result for us.

Best-practice recommendations:

Nuts and bolts are as follow ... List of recommended best practices are an essential prerequisite for the survival and development in the economic recession. The current financial situation of the company at the beginning of the economic downturn, the priority and urgency of the implementation of the following bests practices.

1. Accurate monitoring of cash flow: cash flow forecast, your order to ensure that the monthly costs and the costs in line with the debtor. In the cash flow of monthly financial reports. The project needs money from 3-6 months. The key is to know how the monitoring, protection, and the money to work.

2. Pay attention to the list: the transformation of surplus, obsolete and slow Stocks cash. Consider again the benefits and the objects move slowly back to the suppliers. Close-out or inventory reduction sales, adjust inventory. Moreover, since the reduction of the product. To contribute to the placement of inventory and about the lack of basic material. Keys that are not for sale of shares.
3. Timely collection of receivables: These should be converted into cash as soon as possible. Prompt payment discounts to encourage timely payment. Slowly, the condition of the sale of paid subscribers (ie, within 30 days after the change in terms of chemical oxygen demand). The compensation is an important part of managing cash flow. The first rule of invoicing is done as soon as possible after the delivery of goods and / or the provision of services. A focus on the reduction of payroll errors. Most customers delay payments to the law, because it is a mistake, you will not be paid until the copy. E - mail or fax your invoices to save time by e-mail. Publish your payment has been received and stores frequently. The key lies in the development of effective collection, which the payments on time, and warned the problem.
4. Re-focus on you're existing clients / customers: customer satisfaction, let your priorities. Periodic assessment of the history of your customers to buy and buy some frequencies in the May has revealed interesting facts, your customers buy. The signing of long-term contracts with major clients / customers are besides your safety. Prepaid cash rebates. The key is to take the necessary steps to ensure customer loyalty, that is.
5. Re-negotiations with suppliers, lenders and owners:
A) Vendor: The negotiations to determine the level of need that your company and the costs have been determined, it is necessary, the cost of care. . Tell the supplier, the value you've created, but you should immediately costs. Ask your dealer for the price in the long term of payment, and the elimination of the financial burden. Even if you buy the material based on the game. Top-price concessions are willing to accept a long-term contract. To the idea of an exchange of payments.
B) Loans: all financial flows and trade with you and the Bank has exceptions. The first step for the success of the negotiations, to ensure your lone, you are really the lone. It should be on your own funds, because it is in their interest to have a new system. Shows that your assets and plan of action, measures to save costs, and the "how" and "time" for the implementation of his plan is the best way to achieve this goal. You must agree with work together to ensure that we can survive and develop the economy in recession. Negotiations are: interest rates, which are necessary for the loans, and the date for a specified period. Date of commencement of the payment can be just in time for a few months or a year. The key is to understand that your bank will work with you to work together, but often to communicate with them are important.
C) the owner, the owner. Please note that you need an extension of the rent. Make sure that a clause in the lease, you have the right to sublet in whole or in rented space.

6. Re-evaluation of your employees: This is a very important region. Wages of the high burden of enterprises. Therefore, the reduction in the number of working hours and changes in the short-term or permanent suspension has a direct cost. The increase in most companies to hire new employees at the time, only to discover that over-staffed, because of slow sales of the economic recession. Dismissal of staff, very careful with your employees, your strength and jerry building quality customer service. Consider the use of part-time or who are the trends, outsourcing of certain functions independently.
7. To better insurance prices: access to the quotations from other insurance brokers, compared with the power to determine weather your current insurance carrier competitiveness. Even taking into account the extent of the changes to the insurance premiums. The key is finding the right balance is adequately insured, but that does not belong with or through the insured.
8. Repeat ad: a cost-saving initiatives, the possibility of you're advertising spending. These tactical advantages for the reduction of noise and congestion (lower wages) on the market. Slowdown is a good way to increase brand awareness and creating a greater demand for products / services.
9. Request the assistance of external consultants: The use of the Advisory Committee composed of registered accountants, lawyers and business advisers, with the aim of providing advice and guidance. They combine experience in working in the same economic situation in the past is very valuable.
10. Verification of other costs: the aim is to devise a plan to reduce costs by 10-15%. Try to avoid unnecessary costs. To tighten the belt once the recession is practicable and financial.
Proactive management of your company by the economic downturn is a major challenge and the key to life. However, through the initiatives, economic recession can be great opportunities for your company to get more market shares. Take advantage of the opportunities for development, we must act quickly to practice in the workplace, and continue to adjust the size of your company's current economic conditions.

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