Many businesses are having to shift gears to deal with the effects of changes in the economy. The key is to make the right decisions now to take control and identify opportunities in a changing world.
Be prepared
It can be useful to draw up a worst case cash-flow position scenario for the next 12 months. Assume that revenues are down 10% or 20% and plan what measures you would need to take to balance these losses and at what point.
Stay on target
Have a clear vision and stick to it. The economy is cyclical so it is important not to get bogged down in the present. The choices you make today affect your future, so think carefully before making big decisions, like laying off staff or cutting prices.
Focus on customer service
In tough times lasting relationships are built. Customers expect more for their money when the economy is lagging, so you need to offer exceptional service. Revise your customer services strategy and think about ways you can add value. Better still, ask your customers what they think, through a customer satisfaction survey or direct feedback.
Cut cost, not quality
It’s a good exercise to go through your budget and see if there are areas where you can reduce cost without compromising on quality. You may be able to trim back your stationery bill, or get a better telephone or power plan.
If wages are an issue, think creatively. Many companies are adopting strategies like voluntary nine day fortnights or pay cuts in order to avoid redundancies.
To help businesses to keep or create jobs, ASB offers Job Creation loans at below market business interest rates. To see if you qualify, call the Business Banking Team on 0800 272 222 or go to the Job Creation Loans section.
Be proactive
If you think you will have trouble keeping up with your loan repayments, talk to the people you owe money to before it happens. You may be able to negotiate new terms to help you pay a more affordable amount over a longer period. ASB customers can call the Business Banking Team on 0800 272 222 to talk through the options.
Look for new market opportunities
As business conditions change so do customer needs. Keep an eye out for new opportunities, partnerships and offerings. Understanding your customers’ joys, fears and frustrations can help identify new opportunities.
If you can see a new market opportunity that would create new jobs in your business, you may qualify for an ASB Job Creation Loan.
Don’t slash your marketing budget
You should be communicating with your customers now more than ever. That doesn’t mean you can’t tighten your budget. Make full use of low cost channels such as email marketing and public relations if you are not already.
Try to stay healthy
This can be hard when you are under pressure, but try to maintain a healthy diet, get regular exercise and sleep. If you are run-down and stressed, you are less useful to your company and your customers.
Free business help and advice
- Free business advice is just a phone call away. Call ASB’s Business Advice line on 0800 405 505 to run your question past our Business Advice Centre team. They will either answer your question on the spot, or put you in touch with an ASB specialist. Or go to the Online Business Advice Centre to submit a question.
- Go to www.business.govt.nz for great tips, articles and resources for business, The new Help for Tough Times section may be particularly useful. Or call 0800 42 49 48 for free practical advice and mentoring from a Biz adviser.
- Contact the Business Mentor service for free volunteer business mentoring.
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