Are you prepared for the next recession? Do you have your credit scores prepared for taking emergency loans, and maintaining cash flow? You always have to answer these questions. Most importantly, you have to evaluate how healthy your business is against an economic downturn.
Going broke is not an option when you run out of cash, your business is no longer sustainable. That means knowing how to protect yourself and your interests in a time of crisis. Measure your business health so that you know how to survive during tough times.
Benchmarks For Business Health And The Bottom Line
These benchmarks can help evaluate your ability to survive and adapt. Companies and industries can use them to decide what policies and strategies need to change.
Competitive Advantage In Your Industry
How unique are you within your industry? What makes your product or service different from that of your competitors? If you have a device that no one else can replicate, then that increases your odds. Now is the time to increase advertising, so that people will notice that you are occupying the spaces where your competitors formerly resided.
Technology is one of the most volatile industries in this sense; a new advancement can disrupt your current operations and render them obsolete. If you are in the tech industry, always have a research & development budget, so that you can prepare to switch when trends work against you. Even if you aren’t in technology, knowing the newest tools out there can help you reduce costs.
Your customers are the main reason that you will survive. If you build customer loyalty and trust, then you have a base that will not leave you. That means showing that you care about them, ensuring they have a good purchasing experience, and going the extra mile. You cannot cut back on quality here.
Do your best not to cut prices; this will eat into your margins. Instead, build a loyalty program and honor incentives. Simplify complicated terms into understandable explanations, and troubleshoot as much as possible. If using a chatbot, check transcripts to ensure no one is frustrated by certain answers.
How well is morale during a crisis? Is everyone prepared to pitch in and help? If so, then you can handle some of the financial issues. Good employees are the backbone of your business, from the entry-level intern to the highest manager.
Evaluate duties and the value that each person is contributing. Try to avoid layoffs as much as possible since they can reduce morale and if they need to happen, prepare to break the news gently. Communicate about new strategies and policies clearly, to reduce confusion and poor communication.
Survive The Next Economic Crisis With DeepSky
DeepSky wants you to handle any economic curveball that life tosses at your business. When you used our Financial WingmanTM program, you receive customized guidance and strategies on how to maintain consumer confidence and credit ratings.
Reach out to us today to prepare for the long term. DeepSky believes in preparing numbers to prepare for the worst and hope for the best, as the cliche goes.