Surviving the Storm

First a few quick suggestions compliments of Charles Alexander, Director of the TSBDC at VSCC. Financial • Review your monthly income statement and cash flow statement. You want to look for trends and upcoming problems. If necessary, sit down with your accountant to review these financial statements. • While increasing income takes a little time, decreasing expenses can be immediate. That doesn’t mean to just make broad cuts across the board. Instead, look for specific fixed expenses you can lower. Odds are that there are some expenses that you haven’t taken a look at in quite some time. • If you carry an Accounts Receivable, make sure you have a collections policy and follow it. Don’t let customer credit become bad debt that burdens your finances. Marketing • I know that I just said it may be time to cut costs, but this is the area you may need to increase costs. That doesn’t mean to keep marketing with the same methods, but if sales are slow, you may need to actually increase marketing, instead of cutting back. • We have all heard the statistics about how much easier and profitable it is to keep a customer than it is to create a new one. Armed with that knowledge you should consider developing a customer loyalty program that will assist you in these tough times. Management • Analyze the amount of inventory and other assets you have on hand. While you need products and equipment to make sales, you do not need an excess of either. • Take this opportunity to focus on tasks that may include professional development and training or research and planning. If it is possible, you might even use this slow period for personal development, which will help you maintain the right attitude, while you begin to practice the other tips mentioned previously.