You'll first notice not a drop in sales but a decrease in your bank balance or increase in your overdraft. To survive you should focus on one or more of the following:
- Improve your debt collection process, ensuring it is systemised and consistently applied
- Reduce the amount of your resources consumed in servicing slow payers
- Allocate scarce inventories and services to your best customers
- Clear surplus inventories
- Extend trading arrangements with your suppliers
- Trim your expenses
The difficulty with this process is easily identifying and substantiating the potential problem areas that could be tackled. Business Intelligence (BI) Reporting, including Dashboards provide you with real time information that compare current results in the form of Key Performance Indicators. KPIs are simple metrics (such as Stock Turnover, Days to Collect Invoices, Liquidity) that you can compare against a benchmark (e.g. your own past results or an industry standard).
You should consider BI Tools that have both a financial and sales KPIs to help you identify missed opportunites to grow your business. Why? Because to Thrive in a tough market you need to grow your market share at the expense of your competitors. The best way to do that is to surround yourself with smart people and systems so you make powerful informed decisions to take your business beyond the pack.
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