5 fundamental rules to survive the economic downturn

In today’s economic climate it is important to set yourself and your business some fundamental rules to survive the downturn. Search Office Space, the original office broker, has put together 5 of them for businesses to follow in order to come through these difficult times.

1. Cut Overhead Costs

One of the largest spends businesses undertake is for office space. In this current economic climate, signing long leases is definitely not the most sensible move, especially with the initial capital expenditure required. In today’s economy, you need to maintain as much flexibility as possible and executive office space is the best solution available at the moment. Avoiding long term commitment and opting for a short lease office space with only one month notice required to vacate is ideal. Not only the terms are flexible, but the office space is ready-to-go, with internet connection, phone lines and furniture included.

2. Stay competitive, do not cut your marketing budget

After salaries, the marketing budget is often the largest area of business expenditure so when the economic climate becomes unstable as it currently is, many companies look at cutting their budget. This could prove to be a wrong decision, as during the economic downturn, there is a need to be even more competitive to attract customers. Furthermore, by strengthening your marketing activity, you may win a leading position in your industry, as your competitors that have made budget cuts would likely have lost market share. In a situation of downturn, you will be able to get even better deals from your advertising as well as email marketing, so make the most of it while you can.

3. Keep your existing customers and deliver excellent customer service

In a period of economic downturn, it gets harder to attract new customers. For you to maintain your business, you first need to look consider your existing customers and ensure they will use your services again and not go to your competition. During the last downturn, it was highlighted that existing customers are the best source of revenue growth and your business will only be able to achieve this through a positive customer experience. As a business providing services, you will need to ensure your customer service is excellent, so you can secure future orders from your existing customers as well as make new ones become regular users of your services. This means you will need to be even more reliable and more flexible to your customer’s needs.

4. Work harder and smarter

Through a period of recession, everything you do and prioritise can make a huge difference to your business. Working harder will not save your business from being hit by the downturn unless you also work smarter. Determination to succeed and a willingness to go the extra mile will put you in good stead

5. Monitor your cash flow closely

This is an important rule to follow at all times, and particularly critical during a period of downturn. Not only should you ensure your business is going well, but you should also look very closely at your cash flow. Even if business seems to be good, it doesn’t mean you will not run out of cash due to large expenses. It is particularly pertinent to monitor your cash flow closely at the moment as credit is difficult to come by. Checking your cash flow on a regular basis is a crucial factor for your business to survive the recession.

Written by Emily Mouquot, Marketing Director.