Whenever the next recession arrives…
There will be casualties. And business owners will be asking themselves - could they have been more prepared?
For SMEs, it is all about resilience:
🟪 Focus on high-margin offerings. One of the easiest ways to erode profitability is to offer discounts or to focus on price.
🟪 Manage cash flow. There are five ways I know to optimise cash flow. Generating more sales is one of them - but it usually takes the longest.
🟪 Streamline costs. Can you maintain your capabilities while being inventive with how you achieve a cost reduction?
🟪 Manage debt effectively. Secure backup working capital options to ride out the bumps.
🟪 Lock in recurring revenue. Move towards subscription models or retainers where possible.
🟪 Diversify. Beware depending too much on one service or one customer.
🟪 Innovate and adapt. You might have noticed that the world is changing faster than ever. Be on the front foot with technology, new working practices and automation.
Recessions bring challenges and opportunities in equal measure.
The right preparation can help you steal a march on your competitors and improve your chances of a successful exit…
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