The entrepreneur's time has a very high opportunity cost, and it is essential that you do not abandon your dedication to the development of strategies to perform only operational tasks.
Escribe Sandra Felsenstein
In times of crisis it is natural for SMEs to retract their expenses and investments and implement savings measures. On the other side, It often happens that necessity leads companies to search for greater efficiency, which could be the positive aspect of these situations.
An action that usually triggers this type of period is the stagnation in the hiring of personnel and, many times, including the dismissal of collaborators. in several cases, the owners of SMEs evaluate "I can do this function myself" or "I can start taking on more tasks from the company".
You have to be very careful with this issue and do not forget that the entrepreneur's time is worth a lot; has a high opportunity cost and it is essential that you do not abandon your dedication to developing company strategies to perform operational tasks.
Lower costs?
At the time of reducing costs it is essential to try to simplify the processes: make them simpler and simpler.
Not only to reduce the usual expenses of the company but also the "superfluous" ones that do not generate added value to the final product, increasing its cost and, due, its price.
This means minimizing the internal bureaucratic processes that, definitely, they use time and resources that do not translate into advantages or benefits for the consumer.
It's time to optimize existing resources and processes, and identify the products or services with the best results.
Although this vision should always be present, it is in times when consumption is in decline that it must actually become a reality.
Why? Today the consumer makes a much deeper evaluation of what to invest his money in and at what price.
The ideal would be to implement this cost reduction through the analysis and optimization of processes, but the truth is that, in many cases (in despair) processes -or part of them- are shortened- that actually generate value in the product or service that is marketed.
In this way, what we achieve is a deterioration of the quality.
items that weigh, but do not press
Regarding the subject of inventories, Two opposite situations arise: in some cases the lack of liquidity, the uncertainty of the market and the decline in sales generate the decision to reduce the stock of many companies.
In others and on the contrary, inflation generates an increase in inventory due to the constant increase in its replacement costs. This largely depends on the financial capacity of the company., the characteristic of the products (perishables, seasonal, and more) and storage capacity. It should always be remembered that the stock translates into immobilized capital, occupied space, handling costs and risks of breakage, with which and for each case the advantages and disadvantages of increasing or decreasing the inventory must be analyzed.
we stop communicating?
On the other side, there is a contraction in investment in advertising and marketing of SMEs. Today, we can locate many tools that allow us to manage the relationship with customers without the need to invest too much, That is why at DINKA we always recommend that the important thing is to allocate economic resources more efficiently., without abandoning commercial management, which is precisely essential at times when consumption retracts.
The implementation and use of social networks, el mailing, direct marketing, the polls, and more, They are very effective and economical tools to establish fluid contact between companies and their customers..
In any case, the clear identification of the customer profile is essential to then execute more effective actions.
In parallel and in relation to commercial management, it is very useful to have boards (simple) for monitoring customer satisfaction, rotation of the same and monthly contacts.
In this way, The importance of having a thorough knowledge of our client's experience when consuming our products or services is highlighted..
In a shrinking market, where there are many players competing to "win" the sales that are generated, it is essential to offer a high added value, not only in the product that is marketed, but also throughout the customer's buying experience.
Many times with "little" we manage to stand out in the market, leveraging truly beneficial results.
Cold mind
The despair of wanting to sell more is also a characteristic situation in times of crisis and market retraction., although it is not a concept directly associated with an adjustment. It is common to see entrepreneurs desperately trying to increase sales, as to counteract the drop in the results.
The truth is that the focus should be on optimizing the performance of companies, with special attention to leveraging the segment of products and customers that represent the highest performance.
Sell better and not “just” more
You have to be able to identify, of all business units or products offered, which are the ones that generate the best results and put the energy there.
Namely, allocate the largest amount of resources to leverage the most profitable.
The same happens when identifying the types of clients: there is always a group to which it is convenient to dedicate special attention.
On the other side, It should be noted that for SMEs there are support programs for business restructuring, grants and loans at competitive rates, which can be accessed not only to deal with the effects of difficult times but also by applying this injection of capital to reorganize the company, redefine objectives and implement strategies and tools aimed at greater efficiency.
This can be a good investment to leverage future results of the veterinary company, although in reimbursable cases, the subsequent repayment capacity must also be carefully evaluated before facing the commitment.
Conclusion, crises only make us more efficient, more creative, most innovative. Today, in such a competitive market, This is essential not only to overcome the situation but also to grow, develop and stand out as entrepreneurs.
Innovation is a process, not an isolated act, which consists of doing things differently to adapt to the new demands of the market.
It does not necessarily mean having to invent a new product, but perhaps how to add value to what you already have.
Constantly reinventing ourselves means a challenge, but that today should be part of the culture of each company.
As the American motivator Anthony Robbins says, economic problems are not solved with money, but with imagination.
