If your business has been around long enough, then you know that economic slow growth and downturns are not an unfamiliar phenomenon that affects businesses. Ensuring your business survival can be challenging and you need more than just financial wits to get through one. You’ll need to know how it will affect your business, what opportunities you can take advantage of and be ready to make hard decisions as well as tough negotiations.
These tips will help you to make sure your business stays afloat and survives.
Review incentive mix
When you engage in audit firm services, you can review your incentive mix for the sales staffers. Make cuts on the fastest moving products and increase the rewards to slower products. However, the net effect should be slashing the net rewards. That means a lower take-home pay, especially for the sales teams.
For the rest of the operational expenses, comb through each unit and each process and tighten any leaks. Make sure that each dollar gives you maximum return.
Technology is meant to make us work more efficiently and improve our productivity. The irony about embracing technology during a downturn is that you will be incurring capital expenditure when you really cannot afford to. However, there are other creative ways of improving your technical capacity.
There is so much software available today that you can automate several processes at an affordable cost. Check out software to automate the payroll, marketing, and accounting among other business functions. The more you automate, the fewer hands you will need and the more savings you will make.
Outsource to experts
During a downturn, your business needs to operate at the highest efficiency. That means you pay for a job well done, not time spent on a job. You can meet this objective by outsourcing to qualified professionals. Consider outsourcing functions such as marketing, or accounting. Outsourcing to accounting firm services in Singapore will also enable you to tap into a pool of experts who can give you insights to survive the downturn. Also, will be able to focus on the core business and getting back on track without worrying about the function.
Empower your average staffers and improve their efficiency
Many firms look at lay-offs as an immediate and effective way of responding to downturns. Usually, the worst performers are the first to be targeted. Whereas this is a proven and effective method, it also comes with a lot of emotional pain and you may lose loyal average workers.
Consider keeping your average staffers. However, empower them and help them to be more efficient. Research shows that such staffers will often put in an extra mile to get the job done, and they’ll eventually catch up with the top performers.