9 Survival Strategies in a Difficult Market
- Know your Objectives
In the short term it may simply be survival, but are you going to give up on early retirement or market leadership in 5 years?
- Know your Numbers
How well do you grasp the concept of gross margins and breakeven analysis? How exposed are you to a downturn in sales? Do you know your overheads by category; debtor days; creditors, stock levels? Cut overheads where you can. It’s surprising what you can do without affecting sales. Negotiate harder with suppliers
- Know your Customers,
Call them past and present, e-mail them. Nurture back clients who have left. New customers are more expensive to gain than existing ones are to keep
- Know Your People
- Know your Differentiators.
You pride yourself on the quality of your product or service, your dedication to customer value but can your prospects differentiate you from the competition? What distinctive benefits do you offer?
- Know your Business
Do you really understand your operation’s strengths, weaknesses, opportunities and threats? Have you assessed macro factors eg the economy and its likely effect on your business? Have you developed plans to exploit opportunities with strengths, avoid competitive threats and overcome or sidestep weakness?
- Know your Potential Partners
Have you thought about gaining competitive advantage through collaboration and partnering? This could be with companies further up the chain towards major customers, suppliers or even competitors.
- Know Your Processes
- Know your Priorities
Now that you have evaluated all parts of the business you have a list as long as your arm. This is where you need to sort out your priorities, so that you can cope with, not only your existing workload, but new initiatives to ensure your company thrives in both the short and the long term.