Perhaps you have an unexpected short term reduction in revenue, a new competitor putting pressure on your margins, changes in seasonal trends – and so on.
Here are some ideas on action you could take to counter market conditions, and maintain profits in difficult trading conditions.
- Budget – create a new one and stick to it
- Reward responsible spending – rather than penalise bad spending
- Bank – re-negotiate terms and conditions
- Review location costs – rent, labour, tax
- Review your admin and book keeping needs. See www.mrstradie.co.nz for cost effective, professional and efficient services.
- Review marketing programmes and evaluate use of new techniques such as Facebook, Google and Websites – see www.totalbrand.co
- Re-negotiate or shop around for new suppliers of services (insurance, energy, stationary, communications, IT).
- Instigate a key staff retention programme – www.humanconnectionsgroup.com
- Early payment discounts – pay your bills on time
- IRD – do not get a Red Flag – it could be expensive
- Review operational procedures – look for improvements and efficiencies
- Make sure you are collecting data on your key relevant metrics – to ensure you make good decisions based on data not a hunch.
Get in touch with me to sit down and discuss your business over a coffee.
P.S. This article is part of my Secrets of Success series, aimed at helping business owners and entrepreneurs with some of the key components of business success. The insights I wish I’d had at the start of my business career. I hope that by passing on these little gems of knowledge I can give you some support and help you along the pathway to growth and prosperity.