As soon as an economic crisis hits us, we all are immediately concerned about our finances, suddenly the incomes we were relying on don’t seem that steady. Almost everybody’s reaction to an economic downturn is to reduce their spending, to be more prudent. This happens to regular people and businesses alike. And it is normal. We all want to reduce our risks during tough times. We wait and want to see what is coming next. As an entrepreneur, it is crucial for you to understand the importance of cash during the financial crisis.  It’s is important to any business anyways, but during a crisis this becomes crucial. Luckily technology plays an important role in letting us know about our financial situation, our transactions, our cashflow. Having the right type of information at the right time makes all the difference. When the financial crisis hits, you will immediately want to know who owes you money, what money you owe. You will have to make everything possible to reduce the risk of customers not paying. At the same time, you should be focused on analyzing and targeting your most loyal customers and make them stay with your business during the bad times. They will be your lifejacket, so treat them with the upmost priority. Offer them discounts, and deals they cannot refuse. Reassure them of the importance they have for your business, and the value they are getting from your services or products. At the same time, it is important for your business to protect its cash as well. Reduce any unnecessary spending, reduce as much as possible the costs with your staff. Try and get discounts and extensions from your suppliers.
During a big crisis, large activity sectors are affected, and everybody will try to preserve their cash during the financial crisis. Think of all the people losing their jobs or having pay cuts. This should not worry you though, rather you should be prepared and plan for this in advance. We, and other entrepreneurs, who see the signs of the future crisis, are getting prepared for this. You will not be alone in this. Visit us at www.cluent.net