In continuation from the post on Monday.
Customers have a choice of buying a product from you or the thousand other places online. When given the choice, they are more likely to pick a company that is friendly and personal over one that they consider to be just another business. Businesses, who have learned to become partners with their customers during these uncertain financial times, are the ones that will survive. So spend time talking to your customers and less time being afraid of what the future holds.
Small business owners need to avoid getting into trouble in a weaker economy. It is wise to know exactly what you are spending on your business and compare your figures against what income you are bringing in. In weaker times, some things that you might usually buy for your business may now need to be regarded as a luxury item. Businesses may need to be creative and do some jobs for themselves that they would normally farm out to other companies.
Small businesses need to keep a close eye on their accounts receivables. In the past, it was not unusual for businesses to be able to give their customers extra time to make their payments. In today’s market, that could be financial suicide. Your vendors are looking to have their accounts paid on time in these new economical times. If you let your customers stretch your resources too far, you will run out of cash flow.
Check back on Friday, for the conclusion to this post.
