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Surviving a Business Slowdown
by Brad Trupp, Editor 4hb.com
No one likes to think about downturns in their business. However, should it happen, the sooner you see it coming, the better prepared you will be.
Prepare your financial statements monthly . Look for problems before they arrive -- not after.
There are only two ways to improve your finances -- increase your income or decrease your expenses.
Do not wait until it is too late to build customer loyalty. Repeat customers are the easiest sales.
Employees are definitely one of your most critical assets but good employees are difficult to replace.
It seems obvious to cut back on marketing costs when things get tight, but when sales are slow, you might actually need to increase marketing efforts and costs instead of cutting back.
Having product is necessary to make sales, but do not let excessive inventory create cash-flow problems in your business.
7) Cash reserves
Not many banks are not interested in lending you money when you are experiencing business difficulties.
8) Credit policies
If your business extends credit to customers, ensure you have a sound credit policy and follow it.
This collection of best practices and tips should help you navigate your business through any downturns and prepare for better times.
Tags: Money Matters