How are You Weathering the Storm?

We have now been in a down economy for some time and even though I am seeing positive indicators, it appears that it will be a while yet before things really take an upward swing. So while you may have taken steps initially to protect your business viability it takes diligent oversight of expense and cash flow to not only survive but to prepare for growth.

Things are happening fast in the business world. Credit card limits and lines of credit are being cut so a close examination of your projected cash flow for the next 6 to 12 months is essential. If the projection doesn't give you the outcome you need then it is time to look at taking additional steps.

If your business is an inventory business you need to closely monitor your product margin. Negotiate with your suppliers for lower pricing and/or better terms. Remember "cash is king". If you have inventory that isn't moving see if you can return it. Even if there is a restocking fee it is better to have the cash available rather than sitting on a shelf gathering dust.

Another use for that dusty inventory might be to use in a promotion. Marketing dollars are tight so use the dollars you have already spent to continue your marketing efforts. Create your promotion and offer it to your email database of current, past and prospective customers.

Examine all your expenses to make sure you aren't spending dollars needlessly. Having said that be ever mindful of the customer experience. Now is the time to nurture your current customer base. Don't cut in areas that erode ease of buying.

Hang in there and stay focused. We are seeing positive signs of improvement. Great success is ahead.