Michael Newman’s latest ‘e-Wealth Daily’ article is titled “Strengthen Your Business in Challenging Times”. [‘Strengthening Business’ Article]


Michael Newman’s latest ‘e-Wealth Daily’ article:

Strengthen Your Business in Challenging Times

Yesterday, I revealed ideas concerning how to keep your business strong during the downturn. Here are few more ideas to consider.

A common reaction to stimulate sales during an economic slowdown is to slash prices. Generally speaking, this is something you should try to avoid. Although it will get people who otherwise wouldn’t be spending to drop a few dollars and add some enticement to people who aren’t feeling the effects of the slow times to grab some discount deals, it will hurt your business in the long haul by lowering the perceived value of the business and by making people feel ripped off once the prices are regulated again.

If you’re going to offer discounts, consider the following: reserving discounts for your best customers. This way, you can move out additional product to those who would be buying it anyway. This way, hopefully, they will be enticed to buy more, allowing you to generate some more of the cash flow you may have been missing.

It also may come time to consider taking on jobs that you may have otherwise rejected for whatever reason. Remember, when money is tight, no job is too small. If it means doing some consulting work or some work that you may have previously felt undermined your abilities, ignore those notions and get to work to keep that cash coming in.

Since money will be relatively scarce, it’s of the utmost importance to keep tabs on it. Frequent reviews of who’s paid, who’s outstanding, where you owe and where you’re spending will help trim costs and keep cash flow up. When you keep on top of your financial situation in a slow economy, you will be properly equipping yourself to make informed decisions about money matters. This will help you to maximize every dollar passing through your hands and clearly illustrate to you what your financial capabilities are.

Along with becoming more informed and articulate with the financial happenings of your company, you’ll also have to get more aggressive. Basically, this means if someone owes you money, be sure to collect. Now, let’s be clear: we’re not talking about going out with a Louisville and breaking some legs! Being a little bit more on top of sending reminders and making phone calls about payment can help get the money in the door a little faster. Also, if you were shying away from taking credit cards because of the 1.5% service fee, it might be time to reconsider. After all, that 1.5% might be a small fee to pay to ensure you get your money on time during a less-than-stellar economic situation.

In a tough economy, the two largest financial goals for an individual should be reducing expenses and debt. Debt can accumulate fast and, if you’re not trying to get yourself out, you can be hit hard. Keep working to reduce your debt, without neglecting your savings. Start by making a dent in your high-interest debts, then move on to the others.

Also, avoid splurging and try to live a basic life. No need to have excessive nights out or to make silly, impulsive purchases. You’ll want to make your dollars stretch as far as they possibly can.

It is very difficult to go unaffected by a slowing economy, but, with these tips, you can position yourself to weather the storm!

e-Wealth Daily

About e-Wealth Daily

The e-Wealth Daily Bulletin brings you daily tips, advice and breaking news related to home businesses, small businesses and internet marketing. Our team of experts gives you the information you need to take your business pursuits to the most profitable level. Founded by Adrian Newman in 2003, the e-Wealth Daily Bulletin and www.ewealthdaily.com are a division of Lombardi Publishing with online newsletters reaching over 100,000 subscribers each month.

* IMNewsWatch would like to thank e-Wealth Daily for granting permission to reprint this article.

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