There is a raging debate going on about the state of the nation’s economy today. Most people would love to blame the government for it. Politics aside, the fact is that America’s trade war is bound to hurt the global economy in an adverse manner. In my assessment we have not yet felt the complete impact. Here are a few things that can be done to ensure growth even when the economy slows down.
Protect Your Cash Flow
If the times are going to get tough then you need streamlined cash flow to ensure that your business stays on track. So make sure to collect your receivables on time. Streamline your billing and collection process. There are certain clients who are always late in their payments. Politely bring them in line at-least until the economy starts growing.
Re-invent your inventory process
You will be surprised how much surplus expenditure is accrued due to excess or less inventory. There are plenty of ways to reduce inventory costs. If you deal in non-perishable items buying inventory at a time when the price is the lowest is better. If your items are perishable then buy the inventory on the basis of your regular demands in a way that you can save costs on storage. After all the items are perishable and it does not make sense of storing them.
Avoid Taking Credit
One big cause of recession is the high interest on credit given by banking institutions. The banks panic when the number of NPAs on their balance sheet increase and they increase their interest rates until the government takes corrective measures. So hold your fort till then and make sure you don’t have to approach any institution for credit.
Re-enforce existing relationships
It is important that your client list does not shrink in these tough times. So make extra efforts to highlight your core strengths to your existing clients. Remind them why they have been in business with you for all these years.
Be ready for harsh competition
Remember everyone is in the same boat as you. So your competitors are going to up their game to stay in business. They will aggressively try to take your turf. You should not back down. If you have the resources, the recession is the perfect time to kill your competition. Go on attack mode immediately.
Keep a level head
This last point is perhaps the most important one. In this environment rumours are rife. The hysteria created by opposition parties and irresponsible media outlets will spread panic in the market. Have faith in the economies core strength and wait for the economy to bounce back.
