Steering The Ship: Leading A Business Through Tricky Periods
By Brian Mckay
If you ever wonder, “what makes a company successful?” the answer might not be what you think. Success isn’t the result of how well the company does during the easy times but how it performs when times are tough.
Negotiating difficult periods is trying for any business. There are so many things as a business leader for you to be thinking about. Especially when the business is in the early stages or is trying to get onto the ladder and compete with the bigger companies. There are so many things that you need to think about to make sure that the business is competing effectively in the marketplace. That your employees are happy and productive. You also need to make sure that your customers are happy and loyal. What are the factors during a busy and difficult time and how can you overcome them without causing detriment to your business?
Currency Exchange
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When your business gets to the point that can trade on a larger scale, managing foreign currency transfers is a big challenge. A method to tackle this is to do a little research. Speak to some foreign exchange providers until you land on one that can understand your requirements and how to manage them in a cost-effective manner.
Many banks offer money transfer services internationally. Your business may want to go down this avenue. Or there are a few currency brokers that may be able to secure a competitive rate of exchange. They can give advice when it comes to risk management. A benefit of using a broker, such as a forex broker, is that they can keep you up to date on the latest movements in the market. They can provide you with regular updates and you can have personal support. It is possible for some brokers to give you the option of fixing a rate that is favorable to you for up to 2 years in advance of the trade. This is something that banks are not able to offer.
Customer Loyalty and Marketing
One of the main challenges in any business is the challenge to market your product or service to potential customers while also keeping your existing customers happy. It is easier to market products in the 21st Century. Texting, smartphones, email, social media as well as other additional communication channels help lots. You need to figure out what the right marketing approach is for your business. When you discover this you and lock on the key on how to make your business more successful in the future. You need to ask yourself questions. Where are your customers? How can you reach them successfully? What is the right message for you to convey?
Getting a new customer is one battle in a big war. How can you keep the customer when they are constantly being bombarded by your competitors that are of all sizes, types, and locations? As your competitors will tell you that they will be able to provide it cheaper than you. Or they will say they can do it infinitely better. Identifying what your customers want and do a good job of giving it to them. This will make a huge difference for your business now and in the future. Identifying customers spending habits is a handy method. This is because customers nowadays are loath to spend. As a result, organic growth from customers new and old is slow. Companies need to spend more time understanding how to appeal to keep existing customers. Also how to reach new customers in a cost-effective manner. The lowest common denominator in marketing is competing on the price. But beware; this can have a detrimental effect on your business if you are underselling your products.
Resource Management
A common pitfall of businesses is capital expenditure. If this drains your financial resources, it may be tough to stay in business for a long period. Business owners sometimes fail to give enough attention to their cash flow situation. A way to approach this problem is either to be adequately capitalized. Or to build up reserves in advance to prepare for emergencies or financial downturns.
It is something that small businesses in particular need to pay attention to. The economy is still recovering from the recession. As a result, money will flow into businesses a lot slower and creditors are not as lenient when it comes to paying deadlines. To manage the resources and cash in a small business, it is tempting to do your accounting. However, with the complexities of managing your business accounts depending on the amount of clients and employees you have, it would be better to get professional help. Investing is considered a gamble in the modern market especially when small businesses are concerned. So make sure that you approach your resource management with open eyes and ears.