Considering the tough economic position we find ourselves in today, we need to accept all advice coming our way. Instead of posting my own words I decided to rather use someone who can say it better. Please read my comments on the listings. Enjoy!
7 tips for surviving a recession
Stelios Haji-Ioannou
Advice to businesses from Stelios Haji-Ioannou, head of the easyGroup
1. Be as upbeat as possible, both as a consumer and as a business person. The more we talk about a recession, the more likely it is to become reality. So try to behave as you would normally. This is so true. You need to operate as usual, go on with your day to activities.
2. Don't stop advertising. All too often, executives see cutting the advertising budget as the easy option because it can be enacted overnight. But this is the time to capture the hearts and minds of consumers. Robust businesses increase advertising in a recession. This is a very brave thing to do, but if you think about it, it does actually make sense. Many of your larger competitors will not continue with marketing aggressively. And that might actually give you the window you so badly need. So go ahead advertise wisely, but do not stop doing it.
3. If you are a small but efficient business, look for the opportunity to leapfrog your larger competitor. The pressure on larger companies is greater because they have higher costs. You should see recession as an opportunity. As mentioned with the advertising tip, this is an ideal opportunity to aggressively stake your claim and establish yourself as a real force!
4. Save money by general good housekeeping. Persuade your staff that every time they spend company money, they should do so as if it were their own. Manage and monitor your expenses. The better you do this, the safer you will be in the long run.
5. This is a good time to go back to your suppliers to negotiate a better deal. If your supplier is feeling the pinch, offer to keep up your volumes if they reduce the price. Look for a bargain. A very good point, many of us are relying on our supplier in order to make a profit, but remember: They are in the same economy as you, so they also need to consider raising prices. So talk to them and negotiate a deal beneficial to both parties.
6. Think twice about launching a new business if it's at the luxury end of the market. This is not the time to try to persuade people to buy R10,000 suits or R500,000 cars. People are looking for bargains. Postpone your plans until the economy is booming again. It is all about planning ahead, delay any new product launches and stick to the basics. Concentrate on that and launch at the right time.
7. Whatever you do, don't cancel the Christmas party. In one of my companies, the internet cafes, there have been well-publicised financial difficulties. I had to put in more money and, unfortunately, make some redundancies. We had to bring the company back into the incubator, easyGroup. I felt it was important to celebrate our successes and we organised a "Welcome Home" party, to keep up staff morale. Whatever successes you have, celebrate them. Probably the most important of them all. Keep the morale high during this tough time. Remember your staff is your most valuable assets, keep them happy, and you will prosper!!!!
Stelios Haji-Ioannou is chairman of easyGroup. He was recently named Young Entrepreneur of the Year