All Entries in the "Finance" Category
When to quit my ad campaign?
Pete asks…
I invested in an intense advertising campaign throughout the month of January which increased my sales dramatically but now they have slumped again. I can’t afford to invest that much money every month, what should I do?
Adrian says…
When you’re thinking about advertising one of the most effective ways it to think about branding on a long term basis. If you advertise with the hope to increase sales and then cease advertising when your sales pick up your sales will always fall back down again and you will be stuck in a high and low scenario. Work out an affordable monthly spend and keep it up continually. This way you will have a steady flow of business all year round and increase your brand awareness.
Temp staff solution
Perri asks…
My Business has lots of peaks and troughs. I feel I need an extra staff member to help me cope when it is busy, however, when it is quiet I would not have enough work for them. What would be the best solution if I don’t think I need to employ someone full time?’
Di says…
A great solution would be to engage an employee on a temporary or contract basis. That way you will have their assistance to get you through busy periods. As soon as work slows you terminate their employment till you need them again.
Do I carry on despite profit decrease?
Kevin asks…
Since December my business has suffered a 30% decrease in sales and 25% reduction in gross profit margin, should I continue my business?
Stuart says…
The economy is affecting each business and industry to a different extent. You are unable to change your industry, however the effect on your business you can change. This is the best environment in a long time to increase your market share at a lower cost than previously. By ignoring the bad news and making sure that your business is the most efficient will ensure you have the best chance of success.
More Cash and Customers please!
Cashflow Crisis asks…
‘I have a retail shop and I am currently facing a cashflow crisis. I had an overdraft given by the bank but have now not been able to pay that off and as such I am in their “high risk portfolio”. Although I am paying off most of my other creditors I need to find ways of getting more customers to come in and purchase. I started noticing the reducing sales approx Jun 08 so I have tried bringing in new products, including being involved in a back-to-school stationery promo, which did not have the desired effect, even though there was a catalogue (letterbox) drop with my business details on the back. I’m working (IN) the business 6 days a week. I have a part-timer but can’t afford to engage any more staff. HELP!!! (Cashflow Crisis)
Aaron says…
If it makes you feel any better ‘Cashflow Crisis’ I definitely don’t think you’re on your own in feeling this way at the moment however, and this is a good thing, I get the impression that you definitely WANT to carry on and make your business successful!
Reducing my advertising spend. Wise?
SaveMe asks…
Sales are down, profit are down and most business people I’m talking to are pulling their ads or reducing their advertising along with the current down-turn. Should I reduce things too? Is that wise? What can I do better? Help!!!
Adrian says…
Astute businesses know that an economic downturn can be, ironically enough, a foundation for significant future growth. Forward-thinkers know that this is the time to begin increasing their company’s profile, cementing reputations and increasing market share in a diminishing market.
Should I approach Centrelink to get some income?
Kym Asks:
Since Christmas my business income has almost stopped. I am preparing a lot of quotes but nobody is ordering and definitely not paying. Should I approach Centrelink to get some income?
Stuart Says:
Centrelink should be the last option if you are running a business. The time you take to complete all the required forms and meet their waiting periods, would be better used turning your business around to suit the current economic conditions. If you are in genuine financial hardship and it is the only avenue left to you, then certainly approach Centrelink.
