How to survive in a weakening market...
The British Chamber of Commerce has warned that businesses will face very difficult years ahead. It will be difficult for those people who are carrying their business alone to survive. If you are a part of a franchise, you can definitely cope with the economic downturn and survive in the market better.
It is always safer to work as a franchise because of the limited risk involved and the support that you receive. This helps franchisees to keep the business in shape and run the business smoothly for a longer period of time.
There are some tips for franchisees by Kathryn Hayes, head of franchising at HSBC Commercial Banking. These tips will help you to stay one step ahead in difficult situations.
- Know your competitors- Always be aware of your competitors. Take advice from your franchisor at regular intervals. Use all their knowledge and skills to increase your profit.
- Minimise overheads- Always keep a check that your goodwill is comparable or better than other firms. For this, work with your bank or franchisor to review your overheads.
- Build your customer base - Re-establish old leads or dormant accounts by going back to data held about past and current clients.
- Consider how customer care is utilised - try to improve the efficiency and communicate actively with the consumers. Make the most of available technology to cut unnecessary costs.
- Always keep a note on your money flow.
By following these few simple tips, you should be able to cope with the current market slowdown in a better way.