Economic slowdown - best time to promote one's brand

Implement smart business practices and recession proof your business

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Bikky Khosla | 25 Nov, 2008
Even though the government is working on a package for the export community, I feel it would be intelligent enough if we look into our operating module and make certain adjustments in order to stay in business with profit margins intact.

At a time when several SME exporters are unable to take the pressures of shrinking overseas markets and are thus closing shop, e-commerce can be the best option to cut down costs of operation and also to get inquiries. This is the time to make new clients as the older clients are going into their shells and Internet-enabled tools like B2B can help to explore newer markets and thus come in touch with new customers.

I feel monitoring one's cash flow is very important and it will be advisable to forecast one's cash flow on a monthly basis and ensure that the expenses do not exceed them. Apart from that, one should carefully evaluate and work towards converting excess and obsolete methods into cash-generating assets without, however, losing sales.

Additionally, exporters and SMEs alike need to shake off the myth that the first thing businesses should do when they face a financial crunch is to cut on their advertising costs. This is a negative approach and actually harms the image of the company.

During this time it is actually profitable to increase the advertising budget when the competitors are down and out. With less competitors in the market, it pays to advertise more and let your customers know about your products. In short, the best time to promote your brand is during this impending slowdown.

I strongly believe that SMEs should now weed out all non-performing assets from their operating systems and review their expenses.

While you are waiting for the authorities to provide certain sops, don't give up on your attempt to eliminate unnecessary expenses without harming your corporate image.

The best possible way to do so is to relocate funds to advertise one's products and to take the help of various B2B tools. SMEs who have done so, have profited even while others were cursing the situation.

Rising to the occasion and acting accordingly is the mark of a good businessman. So what's your strategy - to go with the flow or to act differently and make the most of the times?