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|any business in the early stages of operations Cheap New Jersey Devils Jerseys , the current economic downturn provides a unique opportunity to really examine the details of how your venture is running. Flat or declining sales are a struggle for any existing business, but a serious analysis and making appropriate changes will not only keep your venture afloat but will also prepare you for explosive growth once the economy improves.
The first step is to re evaluate every expense, line by line. Look for any cost that could be reduced or eliminated altogether. Ask yourself how reducing the expenses would directly affect the actual work product of your business. Eliminate any expenses that does not directly affect the sales cycle. Next, evaluate direct costs. Check with suppliers for better deals remember, their sales are probably down as well Cheap Nashville Predators Jerseys , and they are motivated to retain existing customers. Consider alternative vendors. If nothing else, you may find a better deal that your current vendor is willing to match.
If you provide perks to your employees, be sure to communicate any changes before they are implemented. Most workers will understand, and many will be grateful to still be employed, even if the free snacks and ball games are cut out for a while. If you must cut staff Cheap Montreal Canadiens Jerseys , be as sensitive as possible. Don t make any promises about the future and be sure you comply with any clauses in your employment contracts and manuals.
Marketing is often one of small business s highest expenses. While these costs should be evaluated, cutting marketing should be the last resort. Marketing drives sales, so it may require more marketing to achieve the sales you need during a recession, not less. Every marketing effort should be evaluated for its cost per objective and cost per sale. That is, if your marketing objective is to increase website traffic Cheap Minnesota Wild Jerseys , every promotion related to that objective should be evaluated in terms of results how many more visitors are you seeing for every dollar you pay? And how many of those visitors are being converted to sales? You will likely find that some efforts are far more cost effective than others. Consider shifting some of your marketing budget to these elements that produce more actual sales.
During slow periods, entreprCwth. Consider any changes in your market or industry that are likely to occur during and after the downturn. Re evaluate your mid and long term plans to be sure they still make sense. Identify projects you and your staff can work on during the slow times to prepare the business for growth. For example, if you plan to expand to a second location or to increase staff, develop any missing or inaccurate standard operating procedures (SOPs), update the employee manual and training program Cheap Los Angeles Kings Jerseys , and work up the numbers on exactly the level of sales needed to make the growth possible.
An economic downturn can be a great opportunity for a motivated entrepreneur. Don t twiddle your thumbs waiting for sales to increase, but use the time to tighten the belt and prepare for future growth.
Author's Resource Box
K. MacKillop, an entrepreneur with a J.D. from Duke, is co-founder of LaunchX LLC and authors a business startup blog. The LaunchX System, a five Unit series of step-by-step business startup procedures Cheap Florida Panthers Jerseys , key software and more answers the question, Where do I start? Visit http:www.LaunchX.
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