The global turmoil can hit many small businesses. We give tips to prepare.
How I can deal with an economic crisis? Answer: with healthy finances. Many companies will leave the market not because they run out of customers, but because they will be able to survive on less sales. Then, when incomes fall, gain efficiency is the best anti-crisis remedy. Not to relax your mind! Dare to find creative solutions to these five tips for keeping healthy finances.
1. Watch your inputs
The waste is fatal in times of crisis. If some of your customers have cut their orders or you buy less frequently, it is vital that you manage your inputs with millimetric care. Prevents leakage and renegotiate with your suppliers to seek better prices. And do not keep overstock: not only mean shelling out more money on every purchase, but increase your administrative costs.
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2. Reorganize processes
Efficiency is vital to reduce costs and gain speed. Moreover, it is the best tool to offer a good price to your customers and prevent them from leaving. Considers this a good time to invest time to reorganize processes. You will be surprised of the savings that you can get a close look at the way you operate your business today. Key advice: do not be prejudiced and evaluates all areas and tasks (including those you perform).
3. Encourage your team to find ways to reduce expenses
If possible, offer an incentive to your employees to identify and implement measures to reduce costs. And the reward does not necessarily have to be money. It can be an extra day off per month or a special schedule for one week. Be creative, but do not lose sight that you offer something that really interests your employees.
4. Protect yourself against the dollar
If your business depends on input purchases abroad, ready to operate in different scenarios of exchange rate. Following the global turmoil, the dollar has become more expensive in many emerging countries (America has been no exception) forcing local businesses to pay more for the same products. If your case is upside down (you have clients that pay you in dollars), be prepared to use either the additional resources they can reach you.
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5. Unify debts
It’s a fact: concentrate your liabilities with a single bank can help reduce some points the interest rate you pay monthly. In addition, it will reduce administrative costs and will avoid many headaches (from unnecessary trips to the obligation to deal with three or six account executives at a time). Evaluates this alternative with several banks and choose not only which offers better rate, but who think he can become a good business partner in the medium term. Also consider that some customers may delay their payments, so you need are strengthened financially (to hold while you pay).
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