Our end of the month client financial reviews were hopeful for the first time this year. June seems like it turned out to be the best month of the year for brokers, and sales are ahead of cancellations for most of our technology clients. Hip Hip Hooray!
Nevertheless, this coming winter may be tougher than last winter, so build reserves. We advise keeping these six covenents in mind as you plan the balance of your year.
Hold Cash – Be sure to have enough cash on hand to cover cash flow shortfalls between November 2009 to March 2010.
Continue to be Creative and Innovate – shortfalls in cash have stimulated new online marketing tactics which have been effective. Keep up the good work.
Stay focused on the Customer – All customers spending money today expect you to appreciate their business more in a recession. Make sure you are meeting your commitment to them. The customer is buying on price first, and product second. Be very competitive.
Stay on top of your brand mentions – Information about you and your company is moving around the internet at lightning speed. Be sure that you stay on top of your online reputation.
Don’t Bet on Government Stimulus – Stay hopeful, but do not assume that the government stimulus will work. Many economists are speculating that real estate will not see quick results. Be prepared to fight a long battle, and be mindful that as the stimulus wears off, many of the systemic business problems will still be around to fight.
Focus, Focus, Focus – Don’t try to do too many things – focus on doing the core things well – retain your current customers and fight hard to get every new source of revenue you can.