Businesses up and down the country have seen either good stabilisation or a return to steady growth this year. But this is at risk of faltering if the public spending cuts cause those that work in the sector to suddenly cease their spending. The knock-on effect will then spread throughout the country to affect consumer confidence as a whole.
So the question is how do businesses limit the possible effects on them? I say get back into the recession mindset. If things are going to become more challenging, repeat what you did in the recession. Emphasize all your USP’s to promote your business as better. If your a company selling high-end products, don’t reduce your profit margin, your going to need that to help get through the tougher times. Don’t panic and reduce them, if people appreciate the standard of product, they will still be prepared to buy at a higher price.
If your a company selling budget products, I would give the same advice, but be prepared to raise prices if you have to. Taking cost increases on the chin if times get tough again is going to put the business under extra unnecessary pressures.
So, just hold tight, and try to weather a storm which could last longer than the recession.