Many companies, when faced with a tight economy, try to stay in business by cutting expenses.
They believe that this is the method that preserves their cash flow.
For a short time, this will work.
But, over the long term, this is not the way your business will be successful.
Companies all over America are still laying off staff.
How does that affect your remaining staff? They are demoralized, cutting into their productivity, and probably looking for a new job.
If you have laid off employees, take affirmative steps to reassure your remaining employees that you value them and that you are taking the steps needed to keep the business going.
If you give them a chance to contribute ideas about how to improve processes or create new products or services, you could find yourself with more income than you had hoped for.
Are you trying to save money on marketing? You may need to spend more in these tough times to keep on top of mind of your customers.
This is not the time to cut this area of expenses.
If you are trying to save money, be creative about your marketing.
Look for ways that work but are cheaper and do more of those things.
You should be tracking results to ensure that you are spending your money wisely.
Make sure that any cost-cutting measures that you are taking do not affect the quality of your products or services and do not harm your reputation.
What you should be doing is thinking about how to get more revenue.
This is the pathway to long-term success.
How do you get more leads of better-quality customers? Can you raise prices (yes, this is counter-intuitive but you want customers to think of you as top-tier, not bargain basement)? Can you get each customer to buy more from you than they typically do or more often? Can you add services or products in a bundle at an increased price? Can you work with another company in a joint venture? Other ideas to grow your revenue can include selling complimentary products to what you are currently selling.
The more products or services you can offer to your customers, the more they have the opportunity to buy something from you.
Or can you enter a new market - either geographically or demographically? Think in terms of growing, not shrinking and you will be more likely to be in a mindset to not just weather these difficult times but to become successful.
They believe that this is the method that preserves their cash flow.
For a short time, this will work.
But, over the long term, this is not the way your business will be successful.
Companies all over America are still laying off staff.
How does that affect your remaining staff? They are demoralized, cutting into their productivity, and probably looking for a new job.
If you have laid off employees, take affirmative steps to reassure your remaining employees that you value them and that you are taking the steps needed to keep the business going.
If you give them a chance to contribute ideas about how to improve processes or create new products or services, you could find yourself with more income than you had hoped for.
Are you trying to save money on marketing? You may need to spend more in these tough times to keep on top of mind of your customers.
This is not the time to cut this area of expenses.
If you are trying to save money, be creative about your marketing.
Look for ways that work but are cheaper and do more of those things.
You should be tracking results to ensure that you are spending your money wisely.
Make sure that any cost-cutting measures that you are taking do not affect the quality of your products or services and do not harm your reputation.
What you should be doing is thinking about how to get more revenue.
This is the pathway to long-term success.
How do you get more leads of better-quality customers? Can you raise prices (yes, this is counter-intuitive but you want customers to think of you as top-tier, not bargain basement)? Can you get each customer to buy more from you than they typically do or more often? Can you add services or products in a bundle at an increased price? Can you work with another company in a joint venture? Other ideas to grow your revenue can include selling complimentary products to what you are currently selling.
The more products or services you can offer to your customers, the more they have the opportunity to buy something from you.
Or can you enter a new market - either geographically or demographically? Think in terms of growing, not shrinking and you will be more likely to be in a mindset to not just weather these difficult times but to become successful.
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