Fri 3 Apr 2009
* Assess Your Pricing Methods
You will need to cross check whether you have correctly priced your products and services. This is critical when it comes to your bottom line.
More often than not, a small business owner might offer their services at a very low rate as compared to the market.
If this is the case for you, then conduct an assessment on your pricing strategy - and increase the rates of your products and services if need be.
* Upsell Your Products to Your Clients
Since you might not get new customers during tough times, you could try to upsell your products and services to your existing clients.
By offering them various incentives, you could convince them to purchase a higher priced product with better features instead of what they might have had in mind.
* Explore New Markets
The money required to set up a website is not much, but the returns could be high by entering new markets.
Try to enter new markets in inexpensive ways so that when times improve, you will have already settled in and have started reaping the benefits.
You can also form partnerships with other businesses to market each other's products on a profit-sharing basis.
* Control Your Expenses And Lower Costs
Try to lower the costs related to your products by asking for free deliveries or extended credit from your suppliers.
On the other hand, postpone non-critical expenses or try to split them up so that your cash flow is not adversely affected.
* Offer Incentives to Your Sales Staff
Offer attractive incentives to your sales staff in return for increased sales. You will have to pay incentives only when targets are achieved. This will motivate your employees to put in extra effort for that extra money.
* Pay Off All Loans As Soon As You Can
Try to clear off or pay down any loans that you may have as soon as you can, so that your interest load is reduced. Do not apply for a new loan until you have repaid the old loan.
Also, make all your credit card payments on time, since the interest on this type of debt is extremely high.