Sunday, March 17, 2019

3 steps to run business successfully in any market conditions






Stock market conditions not only affect businesses but affect overall inflow of cash. Cash flow for a long term actually decides market conditions. If there is high cash flow then market is on high side and opposite means low market conditions or ‘recession’.





It is comparatively easy to sustain when market conditions is on higher side. People are ready to invest or purchase and there is likelihood that they will opt for your product as well.
But testing time is when market condition is on lower side or ‘recession’ is all we say. During this time, everybody wants to save money and therefore, people become very choosy to buy any product or service.
Businesses that plan well tend to survive the recession. Today we will explain 5 easy ways for your manufacturing business to survive toughest market conditions.

1.       Reduce cost: You must have heard this 1000 times but how to do that. A general method cannot be prescribed as every business is different. But a general idea can be provided which is applicable to every business.
For Goods manufacturers:
·         Buy in bulk where possible which helps to get low input material prices
·         Bargain well to get best prices in the market for input material
·         evaluate processes through LEAN ideas thus reducing wasteful activities, resulting in reduced labor and input costs.

2.       Use latest technology for production:
It may cost you high in short run but latest technology not only eases your task but customers tend to incline to it. Try some fancy words with detail of your product like PSPO, Ultra edge technology, New and improved etc. and customer will be interested.

3.       Selling and distribution:
Find suitable marketing resources – online marketing is good for some products while some items can be sold nearby.
For example – Ceiling fan, cooler can be promoted in hot areas, so offline marketing is more effective than online marketing.
While for fashion and accessories, online marketing is more effective and rewarding.
The whole idea is to hit the optimum utilization of resources so that you always have buffer to cut prices when market is low. You can only save more when you employ all tactics above to reduce your cost.
Bonus tip:
As per past trends, market tends to go down as well as move upwards after some time or year.
The businesses that stand in toughest times earn inevitable goodwill of their customers. These customers will stay forever. That’s why; some companies opt to run business in losses rather than discontinuing.
Therefore, saving or ploughing back of profits is the best tool to survive. When business is running successfully, keep at least ¼ th part of net profits as savings and do not use it for further expansion. These deposits can come handy in any situations.

All suggestions above may be more useful to small and medium business. However, above suggestions can be used for any scale of business.


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