SURVIVING IN A DOWN ECONOMY…Are You Prepared?
We hear about it in the news every day, the housing downturn, weakening employment rates, worsening consumer confidence, credit tightening and the threat of inflation are all factors expected to be a drag on the economy. It appears the only companies reporting record profits are the Oil Companies. So what can you do to help your organization not only survive in a down economy but succeed, the answer is plenty!
First thing is to analyze what your role is within your organization and what impact have you made in the past 6-9 months to enhance your organization. If you are not consistently looking for ways to improve yourself and your company’s profitability you just might find yourself in the unemployment line. Always look for ways to positively augment the operations of your organization.
For all you CEO’s, Presidents and Owners there are a few things you can do to help your bottom-line:
- Enhance your current Customer Relationships…If you don’t someone else will and you just might find yourself with one less Customer.
- Be prepared to be flexible with payment terms, especially in a credit tightening environment.
- Ask for input from your team on what other operational improvements or services can be effectively offered to your Customers. Will your Customer view you as a Value Proposition?
- This might be a good time to dust off that business plan that guided you in the early years. Sometimes going back to basics can make a big difference.
- Ensure you have an effective Safety Program in place. Be proactive and always expect the unexpected by having procedures in place. Example, having a return to work policy may dramatically reduce your overall workers compensation claims which in turn could reduce your premium.
- Share with your Broker, Agent and Insurance Carrier that you have such programs and policies in place. This may lead to credits towards your premium during your next renewal.
A down economy doesn’t always have to be negative. It can be a good time to reflect on your role within the economy and what positive impacts you can make. Maybe tightening of the cash flow is necessary but don’t lose sight of your customer and their needs that must be met. After all, the glass is only half full!!!
G&G Risk Management Consultants, Inc. provides many services including safety, training, risk assessment, program development/enhancement and many other services. For more information or call us at 925-778-9624.
Written by:
Edwin Garcia, President/CEO