Tue. Oct 27th, 2020

Financial Planner

Tips, tricks and guidline for financial planner

Tips to overcome a slump in business

If you are going through a negative moment in business, it is good to learn how to deal with and whose solution is not to reduce staff or quality of products, but care prices and other secrets.

Many entrepreneurs don’t prepare for bad news, nor know how to overcome a slump in business because they do not have an adequate contingency plan.

And in all companies, there are seasons in which better or think. Nobody wants to imagine what would happen if, for example, the largest customer decides to terminate the contract, something unexpected happens, etc. Which can happen in any business, large or small.

So if you find yourself in a bad situation you have two ways to choose: the first is to sit waiting for the solution reaches the hands, and the second, take action and change the situation. In either case must be decided consciously and relaxed manner.

overcome a slump in business

Regarding compliance of all corporate commitment, entrepreneurs should know what is the minimum amount required to meet such obligations, including office rent (if not own), payment of salaries and services, taxes, etc. Everything else is profit.

So you have the ability to afford it mandatory at least? You can reduce the gain for a time, making war economy? What actions can take the employees to save?

To Reduce staff?

In the case that you cannot continue to keep all employees, this should be the last step before exhausting all other possibilities. Those who knew how to face a hard time in business realized that maybe that was a good decision. But it’s not always like this.

The changes made in the company have a big impact, always; can be good or bad, then it is vital to know how to exploit the new situation. How? For example, if you have no choice but to dismiss or lay off employees (or some of them), perhaps to keep their work can be more effective and deliver products on time.

This does not mean they are threatened, because if you do not work well, be dismissed, but perhaps having fewer people and less demand, supply may be of better quality or be terminated earlier. And this is something that can be offered to customers (former or potential).

You might be interested in: 4 Japanese lessons to succeed in business

But we should ask whether laying off employees is the only way to overcome a slump. Some owners of enterprises do without one or two workers in the first month and analyze what changes occurred that decision. Then, they can go to do so with one or two more the next month, for example.

The truth is to lay off staff must be a last resort. Why? Because if you have a good business plan indicating how to act during a downswing will not be as necessary to lay off workers.

Or, to be staggered, or maybe fewer people lose their jobs. Remember that when a company there are layoffs, the climate is very tense and that does not bring good consequences. All are afraid of being called to the manager’s office, but may also be more effective, do not be late and not procrastinate.

Lost sales cycle

The simplest way to deal with a bad step in business is to regain control of the sales cycle. Must manage well the prices of products, discounts or other suppliers of raw materials, you prefer to get lower profits to lose a sale search, etc. All these strategies can help greatly to slowly be improving the economic balance of the company.

Another option is to debug the client not to pursue professional relationships with those who do lose more than you win. For example, if a company asks for a product that does not provide much gain while consuming a lot of resources (it may be time, personnel, raw materials, infrastructure, transportation) will be better than the contract is terminated.

Many business owners make the mistake of keeping these customers because at least bring them some income. It can be a long strategy as it can find better to provide more with less effort.

Finally, it is necessary to evaluate the offer, IE, products or services are available to consumers. Perhaps it is believed that in these times of “war economy” can not invest in advertising or marketing, however, is precisely the negative periods when you have to work on all fronts.

Finally, do not start lowering prices or laying off staff; those are latest resources that run only entrepreneurs who are desperate. To cope with a slump in business, you have to be prepared beforehand.