To remain viable and profitable, you must plan for a period longer than the recession, perhaps a year or longer. Always see it as getting worse and cut on your expenses as your consumers are cutting their costs. One thing for sure is to be always one step ahead of the recession. Still have plans ready and do not wait to see the real effects to kick start those survival tactics.
The more debts you have, the more cash you need to make your interest and principal payment. When a recession hits, less money is coming into the company, and access to capital slows during a downturn. Companies can overcome debt obligations by issuing equity. If a company thinks the recession is coming, it should deleverage.
For example, during times of economic difficulty, many governments will authorize generous budgets to aid its citizens. Hong Kong is the same, and many grants, rebates, and loans are being made available. Your business needs to know of the government assistance that you can seek. One of the best examples is to take advantage of the Export Manufacturing Fund, which could help your expansion into foreign markets. This will help increase your customer pool and allow you to follow the demand.
Invest in your customer relationship
Focus on your current customers by creating the best results and experience for them instead of investing so much in attracting new clients. It is much easier and cheaper to get a repeat client through excellent service and delivering on your promises than a new one through advertisements and other marketing strategies. Happy clients, in turn, bring more clients by sharing their experiences with other potential customers.
Plan your finances
You do not know how customers spend; however, you can estimate their spending patterns and adjust accordingly. Be sure you are attracting your ideal clients and have finances in place way ahead before you need it. It is always advisable to look for finances before you desperately need it, and when there is no high demand for the financial lending facilities.
This means it is important to look at your own accounts and manage your finances. When you are in a recession, every dollar counts. It is important to plan your money and cash flow. Paul Hype Page is a trusted advisor in the region, with years of experience, and we can assist in your annual compliance needs.
Position your business for success before the economy starts to slow down by recognizing that you have a choice to be a business owner who adjusts needed to leverage the opportunities that inherently arrive in a recession.