Now is the Time to Recession Proof Your Small Business Franchise
Our economy is facing a real challenge today for both consumers and business owners. Everyone's financial stability is somehow affected and can change any moment. As far as small businesses and franchises go, the recession we are experiencing now can produce an acute sense of doubt. It seems like everyday we deal with an economy that predicts an uncertain future for our business.
But, all this doom and gloom doesn't mean that a franchise cannot be successful. As long as you have a clear business plan and are open to adapting it to meet today's changing business environment, you will find success. Begin by determining what exactly should be done. Figuring out what to do to keep your franchise afloat should be your most important goal. Here are a few fresh ideas to act on, that would give your business a course of action and, hopefully, show a fast recovery from this challenging economy.
Cutting costs is a necessity nowadays. This doesn't mean laying people off, but looking at which expenses can be let go of. Even people who work at home can cut expenditures. All wise business people continually look for ways to cut costs during the course of their business' lifespan, even more so when times are tight. Take some time to reanalyze your situation and apply a revitalized focus towards narrowing your business expenses to the essentials only.
Aggressively Negotiate with Your Suppliers
As you are cutting costs, don't hesitate to try and wheel and deal with your suppliers along with other businesses from whom you receive services. There is nothing wrong with trying to get them to reduce prices. If you are working hard to keep your customers happy in the midst of a difficult time, like this recession, your suppliers should be doing the same for you. Don't be afraid to tell them that.
Go After Dormant Clients and Old Leads
A business slowdown is the perfect time to pull out all the stops and try to drum up some business any way you can. Start tracking down clients who haven't used your services in a while. Give them a call and see how they are faring under these financial circumstances and also inquire how they are doing personally. Let them know you aren't simply contacting them to try to get some business, but you are interested in their situation and tell them to do not be afraid to ask if they ever need anything from you.
Keep a Close Eye on Payments
Cash is always far more valuable than credit, especially so during a recession time. Be sure you have tangible cash in your accounts by reminding clients about overdue invoices. You never want to be a hound, but you also want to be certain that clients notorious for late payments get their funds to you on time.