How Can I Protect My Company And Seize Opportunities From Economic Change?
What are you going to do if the market crashes tomorrow?
Here’s what is covered:
Changes you could make to improve the bottom line and improve cashflow
Whether cutting the marketing budget is the right thing to do
How to diversify your marketing portfolio during uncertain times
How you could be preparing for a recession
The importance of online services/solutions
About this video
When your business is flying, clients are signing up and there seems an infinite supply leads it feels great! You are on top of the world almost, but have you prepared for a sudden crash overnight? Your market dries up, your loyal clients stop spending… Prevention is always better than a cure, Alex and Rupert are going to explain changes you could make right now to help protect your bottom line and also protect against business failure.
Hello, everyone. I’m Alex Smith and this is Rupert Honywood. We’re from Business Growth Bureau. Right now we’re going to be looking at a really pressing question and its quiet a good one, how do I protect my company during economic change where do we start this one? (00:14)
It is quite a big one actually. I’m sure I think we both agree there we’re living in particularly uncertain times as massive opportunities out there. But also, it is a case of making sure that your business is well protected from change but also a position to seize those opportunities. (00:31)
I mean at this point, it’s probably good to mention that we have other video episodes wherein we talk about how to market in different ways, how to go on the offensive in terms of providing value and content to get people come to you opposed to always going to them. So obviously, in addition to this video there are other ways you can learn from different ways to protect yourself. What do we cover right now to help with the economic change? (00:56)
Well, it’s a very interesting subject. I think the first thing is about doing some very basic things in your business obviously looking at things like your overheads. It’s very boring things unfortunately, but cutting out unnecessary expenses which is absolutely amazing when you go through your bank statements and you realize how many incidental things that are going out. And then you start looking at where you really need those, quite often you can find and can easy save 500, 1000, several thousand pounds or dollars per month by doing that with no impact in your business at all on the fact it’s more profit on the bottom line.
Another very basic thing is if you’ve got some expensive debts in your business for example, debt can be good as well as bad but let’s say as a business you’ve had to invest in certain things and some of the arrangements you got are more expensive forms of finance then you could be looking to other refinancers at lower cost or just basically paying a lot of that stuff down and that give you more resilience in your business.
The other side of it lets say there was a massive economic change to some reason as a river downturn for a while what companies can do which can be some of the worst things to do is they’ll cut out quite often that say their marketing spend and yes in the short term that will help on the bottom line. The problem is as you start to then recover out of things is your business has actually been impacted whereas others where they’ve been able to invest are able to race ahead of you coming out of a potential recession or whatever may come on the back of it.
So bear in mind these things can be quite local as well so it may be that where you live you say if in the UK or might be the US and maybe even some territories or industry sectors can actually be impacted positively or negatively by what’s going on so it’s about getting your marketing right around that and to diversify some of your portfolio of marketing as well, your product range and equally where you can start to reach other markets. (3:11)
So, is marketing the sole thing to do to protect yourself when economic change right? (3:15)
No, it’s not the sole thing but certainly what you should be doing is making sure that one of the things you don’t cut down on in fact you can possibly expand on because everyone else will be trying to cut is your marketing . If you keep that continual lead flow coming into your business that’s actually what’s going to drive the sales it’ s just that if and when things change you just need to be a lot smarter about it.
So let’s say UK went through a period if recessions then why wait for that to happen why not other markets look now. Why not create products or services which meet the needs of those other markets. (3:51)
Would it be worth mentioning as well in terms of obviously a lot of products or services that we provide require people’s time to do it? And is it worth looking at for a lot companies certainly that provides services about actually taking that online so it can be accessed 24/7 in terms of time periods but also so that doesn’t then require any real maintenance apart from content creation and things around that. Obviously when we’ve got expensive BBM’s and support stuff around us if the market dries up you still have to employ those people and pay them.
If you’ve got solution online there’s always there, it doesn’t cost that much to maintain. Is it worth people whether in a small or large business considering the idea of getting their products and services online? (4:34)
Yeah, to be frank you should be doing that anyway. (4:38)
Is that the future when you think a bit for most of the business? (4:40)
It certainly should be. Obviously, you’ve just got bear in this that in this information age there is a lot of free stuff out there. So you know one of the biggest tools out there that we all got access to for free is YouTube. What better place to be. So if you’re going to do always make sure you’re going to share massive amounts of value but also a big part of it is that once people feel they’ve built relationship with you they will be the people that come first because they’ve already feel that they know you. There’s a bit of element of relationship trust there.
So it’s about having all that good content out there and certainly the other thing is it doesn’t all have to be free. You can create products or services which can largely deliver online at fairly low cost. Again that is the way of giving you resilience plus it also means you’re less governed by territory. It’s much easier to trade in other countries through having them online. (5:35)
In a world now where we’re trading in time more than really anything else, is the age of going to meet clients is that a dying art? Is that something that’s on the way out? Because in my personal opinion and in the way we work a lot of it is even we get people to come to us in their inner groups they have 40, 50 people or we do a lot of stuff online so through different mediums of platforms but is it moving into a world now where everything, everyone’s expecting it to be over the internet. Everyone is expecting it to be over virtual things like zoom call, is that the future? (6:09)
I think definitely that is a large part of the future. I wouldn’t say the meetings are dying out possibly the way the meetings happen now is different. For example, we ourselves in the last year or so were going out to see lots of potential clients. You know physically getting on the car, driving over there and obviously bear in mind the time wasted in travel as well as colossal so a lot of the meetings can be held more virtually using video conferencing now.
Obviously in the states as well we’ve got massive things with geography there but you don’t want to get flight every 5 minutes if you need to go and see someone so why not use the technology platforms that are available for us all in a very low cost. But I would say is the consultative sale approach still works but what you can also use other technology around there like webinars we’ve talked about a bit before and all the other good things too. And again that gives the ability to trade site outside your areas gives you more market resilience and be able to scale your business as well. (7:08)
Also then maybe to finish on, it’s a bit testy prediction for the future when you think they crash might happen? (7:16)
Bottom thing is I don’t know but I would say cyclically things seem to happen every 9 or 10 years. There is a lot of money being pumped around everywhere at the moment so hopefully we’ve got another couple of years or so before anything significant happens but one of the things that we all know is the world is a very fast moving place say without gains political debates nothing else like that at the moment. A big thing is now if we should be thinking ahead of what might happen both good and bad and how it positions our business so whatever happens we can actually seize the opportunity from other scenario.
I’ve been nimble, well the big benefits of becoming and running a small business is its can be incredibly nimble whereas that’s where big corporations you know succeed or fail and a lot of the retail model for example whether it in this country or elsewhere is being devastated because they haven’t adapted to the changing times and we just need to do that now. If we seize the moment massive opportunities (8:21)
Perfect! Is there anything else you’d like to add more? (8:23)
I think we’ve cut it all on them. (8:25)
Cool! Thank you very much for watching. As you know I’m Alex Smith and this is Rupert Honywood from Business Growth Bureau. Thank you so much. Take care of yourself. (8:29)
Thank you. (8:31)