Top 10 tips for surviving the GFC
- 1 Get very very clear on what
your Core Business is, and what your competitive advantage
is...
and focus on these.... - 2 Manage your overheads closely,
reduce debt wherever you can.
- 3 Collect, collect, collect and collect your outstanding receivables.
- 4 Cut away the dead wood, the
hangers-on, the time servers... but
- 5 Really generously and
personally look after the people you want with you
when the storm clears. - 6 Make it as easy as
possible for your favourite Customers to continue to support
you.
- 7 Be on the lookout for
opportunities to expand after the storm...
there will be plenty of competitors who are dying for a helping hand. - 8 Don’t panic... assess
calmly... negotiate.... everyone is going through the same
storm.
- 9 Plan for the future, Planning
is key.
- 10 Don’t try and do it all by
yourself...now is the time to get all the support you can...
Now is the time to talk to your accountants, your mentors and to get a
reputable business coach by your side.
Is discounting a dirty word?
Ok, so at the moment many businesses around the world are going through a man made economic slowdown.
But is discounting really the answer? We're already seeing many businesses dong just that, and in a big way. So should you jump on the bandwagon too?
Well, we don't think so. We are strong advocates that your mantra should be "try as best as we can to hold rates with value added services and amenities"
The tactic of cutting rates drastically as well as to scale down guest services, in order to improve occupancy will only prove disastrous. After 12-18 months when the situation improves, it is very hard to increase rates enough to catch-up. Nothing lasts forever, not even recessions.
Hoteliers and restaurateurs should be revisiting cost effective initiatives, focusing on waste management programs, motivating staff by increased in-house training, reducing energy costs and carefully managing yield on room inventory, improving food and beverage attractions with innovative creations by chefs.
There is no better time to win new customers than right now as just about all your competitors are vulnerable to the present situation. Focus on customer retention and customer growth for a wining result and remember "customers need us now more than ever and we need them just as well."
Why businesses typically lose customers!
1% Die
3% Move Away
4% Float from business to business
7% Change business on the recommendation of friends
8% Are chronic moaners and buy according to their changing whims
9% Believe they can buy more cheaply elsewhere
68% Object to the Indifference or Attitude of the Staff
Tom O'Toole - Beechworth Bakery Success
"In every town and business, there has to be the wow factor. WOW is the answer!"
