Recession proof your business

Establish break-even; what’s yours? Need any help?

  • Fundamental to your business and your focus.
  • Low fixed costs and low margins = low breakeven, but poor sales to profit conversion.
  • High fixed costs and high margins = high breakeven, but good conversion thereafter.
  • High fixed costs and low margin = a real struggle.

Cash flow

  • Prepare one and update monthly!
  • Most businesses fail through lack of cash. There are many ways you are able to increase your businesses cash flow, such as leasing rather than purchasing, chasing outstanding debts, as well as negotiating new terms with suppliers.  
  • Make your assets squeak!!  

Thoroughly review the current position and forecast ahead. 

  • An accurate understanding of year on year progress will help establish trends and forecast the next 12 months. If you have a business plan, evaluate performance against the plan. If you do not, you need one!
  • How good is your control? Are the margins efficient and is waste minimal?
  • Identify slack periods; use for building loyalty with targeted promotions, not advertising.
  • Evaluate supplier performance.
  • Make informed decisions.
  • Re-visit your standards of performance to assure quality; train where needed.

Increase your marketing activity

  • Do you know who your customers are, I mean really know them? Do you understand their needs and preferences?
  • Talk to them. Make sure you understand the difference between customers and consumers. They are both important.
  • Invest time in training staff to work on increasing cash margins and average spend. Need help?


 

If you need help hit the "contact us" tab.