Editorials
Making The Most of Your Business During the Credit Crunch
In the face of the economic downturn, fuel price rises and the dreaded term ‘credit crunch’, local business expert Andrew Robinson, is claiming that many local businesses could turn the hard spell into a profitable 2008.
While other accountants may suggest that cutting costs is appropriate, local Chartered Accountants A P Robinson & Co advise that this could have a negative impact on business in the medium term when the economy recovers, causing greater problems for businesses because of its lack of investment. A P Robinson advises that implementing good management techniques and cost effective marketing strategies will help business owners achieve a good year in business.
Andrew Robinson said, “It's a matter of understanding the psychology of our clients as we enter a recession.”
"When the going gets tough, small business owners tend to reduce their spending on key functions such as marketing and IT. But, often this is the wrong course of action to take.”
“Now is the time to invest in promoting your business and improving or perfecting the efficiency of your business. In the long run - by implementing cost effective marketing, such as PR or e-marketing or good customer service - will influence your company’s bottom line and return on investment.”
He continued, "Business owners are reading varying headlines on a daily basis which usually claim a downward financial spiral with regards to mortgages and loans. Understandably, their immediate reaction is to tighten their belts, reduce their staff numbers and prepare for the worst.”
“But if the majority of local businesses are cutting back on areas such as training and marketing, then logically the few businesses that train their staff and market their products and services effectively will grow their market share, and subsequently their profit.”
Businesses in the North East Lincolnshire and the surrounding area are well placed to seize market share from other geographical areas, not to mention their competitors claims Andrew.
"This region has many small and medium sized businesses which are well placed to expand. These enterprises have an advantage in that decisions can be made rapidly and plans to improve or embark on training and marketing can be implemented swiftly.”
A P Robinson & Co has grown rapidly year on year over the last 14 years; a factor that Andrew puts down to implementing his own business advice.
"The credit crunch is not the end of business as we know it, but it is the impetus for beginning to change the way you sell and market your business – at least it is if you want to thrive. The world had already started to expect more even before the credit crunch. Today, the need for competitive advantage and differentiation has become the highest priority for every business.”
“Business owners need to make the conscious decision to become great at proactively promoting their company, training highly talented staff and investing in technology. But this is as good a time as any to put it into effect. Those that invest in training and marketing will thrive during any downturn or recession."
For more information about A P Robinson & Co or to obtain further advice on the content discussed in this article please contact Lizzy Dale on 01472 345888, lizzy.dale@aprobinson.biz or visit the website www.aprobinson.biz
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