If an economy has slowed down and market trends show a negative trend, you need not bother. You should have the ability to manage during this tough period. Most of the companies manage by being selective and focused as far as the choice of products is concerned. During this period, an entrepreneur always thinks of cost reduction by a proper allocation of resources and consolidation of businesses.
The IT companies like TCS, Infosys, Wipro, Satyam and HCL, all have remained in the top class of service providers even during the period of recession.
Without bringing down your product quality and reduction in the marked prices, you need to sell your products in the market. For this you need to devise suitable strategies so that your business is not affected by the recession.
These are some of the basic steps to manage your business during economic upheaval:
Monitor your cash flow: Try to convert all your inventories into cash so that you are saved from the bad sale period. Stock less products as compared to your previous stocks. At the same time control your expenses and increase your liquid funds.
Offer Discounts and Credits: You can consider offering your products on credit to the final supplier and to your customer too. By offering discounts on your products you can increase your chances of sale.
Ask your supplier to give the raw materials/products on credit: You can always request your supplier to give products on credit for a time period till the recession phase is over.
Keep in constant touch with your customers: If you have been maintaining a list of loyal customers, you should not forget them. Pacify them by all means. Also ask them to recommend your name to their close friends or relatives.
Spend less on the publicity: During this period you can cut down your expenditure on miscellaneous activities like promotional events and marketing campaigns to publicise your product. You just can not shun this activity as this is vital to boost up your sales process, so choose advertising options which offers you discounted package.
Increase your portfolio of products: For example, you can expand your product line by introducing a new product. But, keep it at a high price and exclusively targeted towards premium customers.
During the time of slowdown in economy, the nation is in deficit of revenues, so you can think of pushing your business across the boundaries like consider exporting the products on a global level. Often the companies take up offshore business in such a crisis.
Always try to maintain a good relationship with employees as well as vendors and customers.