Every now and then the economy goes through a recession. If you are in Zambia right now, you probably know what happens when the Kwacha depreciates against the dollars and major convertible currencies .This means that Zambians pay more to import goods. it also implies that the price of fuel and food may significantly go up. So how do you save your small business from collapsing in rough economic times ?
The following tips may help.
1.Keep The Cash Flowing
According to business website Balance SMB , cash flow is the lifeblood of your business; to keep your small business healthy, cash needs to continue flowing through.
2. Practice Good Records Management
Track your expenses, know where the money is going, why it is going there, when it is going there and how it is getting there.
3. Focus On Your Core Competencies.
Focus on what you are really good at, what really works for your business, What actually bring in the money for your business.
4. Manage Your Debts
In times of inflation or when the currency depreciates you may pay more for a loan especially if it is in a foreign currency like the US Dollar or Euro. It is also important to have a good credit history as creditors will be more likely to lend you money if you prove to them that you are trustworthy and able to pay on time.
5. Maintain and Expand Your Customer Base
The customer is the reason you are in business they pump money into your business. Provide good customer service to keep your customers. When the economy is hard customers are very sensitive to prices, give your customers good service and they will forget about the price.
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