Recession is the time when businesses are maximum challenged and , it’s generally a good practice for businesses to prepare for periods of economic downturn , uncertainty.
Hera are some of the best ways you can “recession-proof” your business.
Use Digital transformation and business analytics to turn data into business intelligence
In an online world businesses create huge amount of data every day, and business analytics tools like Google Analytics, Microsoft Bo derive results.
The key question to ask: What are the key metrics you can track to make sure your business stays healthy? At IoStar we have built and regularly update metrics and tools to deliver the visibility into your business .
The standard metrics like days sales outstanding (DSOs) and cash flow, revenue forecasting. Etc. continue to rule here. Linking your Website /Portal to the CRM, ERP and financial systems in the back end will give the necessary and a huge competitive advantage.
Build diversified revenue streams
Investors have traditionally seen the diversified portfolio as a key way to maximize returns while minimizing risk. Businesses should see their revenue streams in the same way. In a slow-down period, businesses that have diversified their revenue models will have more stability than businesses reliant on, for example, sales of a single product or dependency on a single large customer.
Use Digital Tolls to get more Customer traction and touch points
Every customer is important to your business, but with the right digital systems, you can determine which customers are most profitable or the customers which are least profitable Track the indicators like customer attrition or distrust or higher complaints or payment delays . The sooner you have this knowledge, the sooner you can act.
Keep the Senior leadership in the loop.
Using digital solutions , like Salesforce, ERP or web based solutions which allows senior business leadership to see data across Website ,ERP, CRM, financials, and services. A recession is normally a difficult time for many organizations and by investing in the best possible digital infrastructure today you can increase the chances that your people will continue working efficiently together to weather the storm.
Track Service Utilisation
Services providers must track average utilization and profitability across products/services Since services are unique hence companies must define /develop the most important metrics to make sure your business is stable or growing etc. IoStar strategy experts can provide the necessary inputs in such cases as well.