Business Services
Nature Coast Enterprise as the local Economic Development Agency is a conduit to information, resources and advice for Kapiti-Horowhenua businesses.
We foster projects and initiatives which are employment rich. As well as this, we promote the interests of business to local, regional, national and international agencies and organisations. Often, our services range from one-on-one client profiles to facilitating access to the area and to other forms of assistance. We make every endeavour to develop, attract, maintain and encourage sustainable well being and business prosperity in the Kapiti-Horowhenua region.
Tips for Business in Challenging Economic Times
The Business Development Team at Nature Coast Enterprise suggest, that difficult times can be a marketing opportunity for any business and therefore encourage businesses to focus on doing their core business well. The team provides the following tips for these times:
Think of cash flow as the single most important factor for your business and review often (weekly and at least monthly). Act immediately if cash flow stalls - remember, "Cash is king". Have a good relationship with your Chartered Accountant, prepare annual budgets, sales forecasts and cash flow reports and understand your breakeven sales to cover costs.
Keep your debtors in-check with nothing over 30 days and maintain aged debtor reports and be tough yet polite when chasing your money. Invoice quickly and make sure your customers know your payment terms and offer them a variety of ways to pay. Be wary when offering credit at this time as you are not a bank.
Tighten your belt and control your costs rather than cutting your costs and be wary of destructive price discounting - move old stock by discounting. Compare your costs to budget and review your overheads and expenses line by line - trim where you can with a focus on the top spending items and consider cashing-up non-essential assets. Consider carefully before adding new product and service lines that could add to your costs yet not to your bottom line profitability. Maintain good inventory reports and operate "just in time" practices according to customer demand to keep production and stock at modest levels.
Manage your banking relationships carefully so your banker has a clear picture of your business. Negotiate your preferred banking terms so your debt management is effective. If you need to borrow consider the type of loan to ensure interest obligations are kept in-check.
Keep talking to your existing customers and the wider market so they know your business point of difference. Do not stop your marketing as this may loose customers to your competitors. Grade your customers with the aim of 80% of revenue coming from 20% of clients. Always delight your best customers with exceptional service and they will tell others. Maintain a database of your customers and keep in-touch with them.
Seek expert advice to keep you in-touch with economic indicators and thinking. Be constantly aware of risks and opportunities to your business so network more as contacts are even more important in tough times. Keeping your skills and knowledge up-to-date is also critical to business development and growth.
Work smarter not harder and be strategic about your approach to software, systems and processes within your business. Planning within your business is critical - always maintain a business plan (see Nature Coast Enterprise for a template) to keep you on-track.
Keep your best staff and let go of others if they are not doing the job well. Use quality recruitment processes and make sure all staff have contracts and job descriptions. Training is critical along with reviewing and rewarding their performance. Always keep your staff in the communication loop.
Review your business insurance needs as in the event of a crisis this could impact on your Cash Flow - remember, "Cash is king"!
Bringing your business through difficult times can strengthen and ensure sustainability in the long term. You will have a more robust business if you focus on the basics or fundamentals of your business.
Keep in-touch with Nature Coast Enterprise as your local economic development agency - we are here to help. We maintain a database and communicate with businesses on a regular basis so contact us to be added at any time, email our Receptionist mailto:receptionist@naturecoast.co.nz