Ten tips for Tough Times

Having survived the tech-stock crash of 2001, the GFC of 2008, following are the top tactics that have assisted me in coping, surving and thriving through tough times.

1. Cashflow is crucial. It keeps the business moving and gives you ability to service debts.

2. Have cash in the bank. Only have debt on assets that help the business grow.

3. Don’t live in fear of the next downturn but have a budget and a plan. Do a “what if” analysis – list the top five or 10 things that could go wrong and how you can prepare for them. There’s only so much you can control.

4. Find new ways of reducing costs without affecting efficiency. Reduce overheads and find ways of being more productive such as new technologies.

5. When times get tough, business owners and senior management may have to roll up their sleeves and get back into selling.

6. Get enough data around your business performance, especially about the profitability of a particular market or sector.

7. On that same note, study the marketplace so you are aware of what customer preferences are and you can take on projects that will satisfy the customer.

8. Don’t get bogged down by the bad news. Try to be informed through different avenues, such as your own business network.

9. Start forming relationships with financiers and be transparent with them, in advance.

10. Invest in new products and new ways of doing things. Entrepreneurs across the world are investing in the future regardless of how badly the global economy is performing today.