I generally write about my clients’ concerns, but today’s post focuses on my family’s business, a 32 year-old facility management firm. My parent’s business has fared better than expected during the economic downturn. They’ve had a couple of clients request lower rates. They’ve had to ask clients to pay higher rates to cover increased fuel, materials and staffing costs. They also lost a client.
Thankfully, none of this has really impacted their bottom line too severely. They have managed to mitigate what could have been much deeper losses by having a plan.
Just so you, my folks received their MBAs from the School of Just Doing It. So, their plan is a simple one, so simple it’s genius. And, it’s actually working.
Here’s their plan.
YOUR BUSINESS SURVIVAL PLAN
- Know where your money really comes from (Which customers bring in the lion’s share of your money)
- Know where your money really goes (Which expenses really drain your coffers)
- Stay on top of what’s happening with your clients (Ask, keep asking “How’s your business?”, “What’s next?”) so you can adjust your business plans
- Keep your clients apprised of what’s happening in your business (”We’ve trying to cut costs”, or “We’re going green”)
- Ask for a raise if you need it, and justify it (Don’t overdo this one. Make sure you can justify the increase. Don’t try to pass on all of your increased costs to a single client.)
- If your client is determined to reduce your pay, negotiate a corresponding reduction in services so that you end up doing more for less
- Scope out new business opportunities–but don’t go overboard. These are stop-loss or filler opportunities, not necessarily, new business divisions.
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