The crisis is never a pleasant time for a company. Faced with the uncertainties lining the horizon, some companies are making their backs round, firmly anchored on their achievements, waiting for the storm to pass, at the risk sometimes to be swept when the wind redoubles of power! Other companies try to manage the situation as best they can by adapting their strategy to exceptional circumstances.
Unraveling, measuring and countering hidden costs
In times of crisis, it is essential to start with an inventory of hidden costs. These expenses, which have the unfortunate tendency to escape the accounting system, can truly plumb the performance of a company. They can be caused by problems of communication within the company, poor organization of work, too frequent work stoppages, absenteeism or insufficient staff training.
After having made a diagnosis of hidden costs, we must look for concrete solutions to remedy the problem: internal training, new timetables, more frequent meetings…
To avoid putting your company in jeopardy by increasing its burdens, it is first necessary to freeze the hiring’s and not to renew fixed-term contracts. If you were planning to recruit a new employee for a strategic position, be sure to choose a person who is immediately operational or entrust this assignment to an employee already present in the company.
As for the increases, reward your best elements in order to motivate your teams to get involved also in this period which requires the support of the greatest number.
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Search for new business opportunities
In times of crisis, but this also applies to periods of calm, it is never good to put all of your eggs in one basket. It is thus particularly risky to rely on a limited number of clients.
The crisis affects everyone and your biggest customer, however loyal, may very well be obliged to do without your services, for the same reasons that may have pushed you to separate from some of your collaborators! To avoid losing your main source of income overnight, prospect!
Even if prospecting is a necessity, it should not distract you from your precious clientele. Never forget that retaining a customer requires a much lower investment than acquiring a new one.
On the other hand, a fully satisfied customer can prove to be your best asset in times of crisis, during which time you often need to redouble your efforts to convince a prospect to trust you.
Protecting oneself in order not to take the crisis in full force is understandable and even rather advisable. However, the impasse would be to remain paralyzed in the face of this uncertain situation by completely halting your development. An attitude of immobilizing that could ultimately prove far more counterproductive than expected, especially if your competitors adopt the opposite strategy.
If you feel the need to invest, make sure that the game is worth the effort. Ask yourself more specifically if your investment will allow you to gain competitiveness or productivity. If you are not sure, it might be wiser to postpone your project.
Get the right tools
Some tools will allow you to improve the management of your business at a lower cost. In addition to the essential accounting software that you should not compromise on, you can also optimize the time management of your employees with specialized solutions,Tags: Business, Customer loyalty, Managing, opportunities, Times of Crisis