In times of crisis, it becomes essential for entrepreneurs to take measures on their company that allow them to stay strong and to be able to “weather the storm” that can be a situation of economic crisis. Measures such as business control, reduction of management expenses, increased efficiency and relationships with customers and suppliers, as well as maintaining a liquidity position, are some of the advisable measures. But the focus shouldn’t just be to hang on until the bad situation passes. Crises are also moments of opportunity in which good performance and even continuing to invest can enhance and strengthen a project.
Let’s look at some tips that can make a crisis situation more bearable.
- Monitor liquidity. The center of liquidity helps any surplus to be profitable. An adequate forecast of income based on expenses provides stability and helps to avoid other evils as a result of lack of liquidity.
- Renegotiate with suppliers. If a company does not have liquidity, it can negotiate with its suppliers to extend the payment periods. With this, you avoid having to incur debt or resort to loans. On the other hand, it prevents wear and tears in the relationship with your suppliers.
- Expand providers. A crisis affects all companies, for this reason, it is advisable to have more suppliers to ensure the viability of your business.
- Focus on your current portfolio of clients. Considering that the cost of generating new clients is greater than that of consolidating the current portfolio. In times of crisis, there is a space in which to reinforce and pamper relationships with your clients. It is time to make them a priority.
- Maintain open and fluid communication with employees. Clearly expressing the status of the company, objectives, and actions to be taken can make the team mobilize and contribute the best in order to work towards these objectives.
- Increase investment in marketing and advertising. Although the tendency of many SMEs is to cut this type of investment in times of crisis. The continuous reinforcement of the recognition of the brand image and the creation of demand for your products is an opportunity at a time of crisis since probably many companies will opt for its reduction So if marketing is already beneficial in general terms in a moment with this there are many possibilities that it will be more.
- Invest in technology that allows you to reduce expenses and increase productivity. Anything that involves investing in times of crisis may seem counterproductive at first glance. In this case, as in marketing, we are talking about mechanisms that will have an immediate or medium-term positive effect on the company. What is not recommended in any case is to retreat and wait for the storm to pass.
- Evaluate factoring as a financing alternative. Factoringsolves, among other things, a major problem for SMEs such as the excessive delay with which some companies make their payments.
Investing in initiatives that strengthen your company will put you in a more favorable position to prosper and regain your business position once the general economic situation improves.
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