But “turn crisis into opportunity“It must be much more than a slogan or a beautiful motivational phrase. successfully face these times, every entrepreneur must dispense with strategies that help him keep his business afloat.
On the blog of CNN Expansion, I found 8 strategies to counteract the effects of the crisis on business. These strategies cannot be ignored. They are simply fundamental and we must read, analyze and implement them with a sense of urgency in companies.
They talk among other things about analyze the market, meet the competition and make alliances. But especially I want to expand on one that catches my attention because usually entrepreneurs and business owners give it little importance and it is: KNOW YOUR COMPANY’S INTERNAL INDEXES.
Today more than ever, entrepreneurs need set measurement indices and controls that allow us, at any time and with a high level of detail, to determine costs, returns and all levels of growth and profit of the company.
This strategy tells us about know our business in depth to accurately determine the decisions necessary to keep it running.
To do this, you need to define the most important parameters that help you measure those areas of the company that must be under control. Some ideas to help you define them:
- Daily and monthly sales numbers
- Production volumes
- Effectiveness of your sellers
- Selling costs
- Advertising and promotional costs
- Administrative burden levels
- Wage costs and labor liabilities
- Average ticket
- Profit margins
- Product or service lines with the highest demand
- Product lines with lower demand
- Client portfolio
- And others that you yourself consider important
Once the parameters are set, you will need to define acceptable margins within your own internal goals and work towards them.
This correctly applied strategy will help you make decisions about staff reductions, moderation of production lines, focus, rationing of advertising expenses, analysis of salaries and commissions, etc.
And remember, it doesn’t matter if your business is large or small, you still need to be professional and work smart for your own goals.
The difference is that the people who run them have enough insight to analyze and apply the right strategies.
If you want to read the full article with the 8 . strategies, you can do so by clicking here.
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