Nigeria is clearly in recession and as a business consultant I get calls from people on a daily basis saying: ‘Do you give loans?’ When I tell them ‘NO’ they say Ehen! How can you then help my business? I say by restructuring it’. Many times I hear the disappointment in their voice, they always say I will call back, but never do. The truth is that times are hard and most business owners believe that money is what they need to solve their problems but is that necessarily true? I don’t think so. In this harsh economic climate there are a few things I believe that every business needs to do:
1. Streamline your product: Too many entrepreneurs believe the more products their business offers the more money they will make, they are caught up in the cycle of: 1 company = Many products. This is not necessarily bad but my question is how viable are all these products? Because if one product is covering the cost of producing other products then it means that the non-performing products are eating up the profits of the performing ones and in this economy you cannot afford that, you need your profit margins to be as high as possible.
2. Cut cost: These are the times when your financial records needs to be your friend and were those who have been keeping records diligently will reap the fruit. Examine your records; cut down production cost if possible by introducing cheaper substitutes that won’t affect your product quality and chop out all the extra fat in your operating expenses; this will in turn boast your profit margins and help your business stay viable in this harsh economic climate.
3. Financial discipline: This is not the time to experiment in any way that will affect cost or revenue. Every Naira spent must be properly deployed and accounted for; organizational and personal expense that are not necessary should be cut off.
4. Get your pricing right: Sell your product at the right price and not at the prevalent market price but ensure that your pricing is competitive. Pricing is a function of the value your product gives to your customers. The more value your customers get from your product the more they are willing to pay for it and vice versa. Pricing is very delicate and must be well thought out because if people perceive your product as too cheap or too expensive the will not buy; and this leads to my next point.
5. Defining your customers: Know who is actually buying your products and what you can do to retain them. This is not the time to decrease product quality rather try to increase it while maintaining a stable price if possible. Defining your target customers and knowing what they are willing to pay will help you meet their demands while guaranteeing steady returns for your business.
6. Did you start with a business plan? It might be difficult to implement all these I have written at once if there was no original road map for the business. Your business plan is the blueprint of how the business should go and it must contain relevant financial projections. The sensitivity analysis in your plan will give you an idea of how much the current economic climate will affect your business and the various ways you can adjust your business to be sustainable at the very least
These are just a few tips that can help my fellow entrepreneurs in these period. Almost everyone is looking to throw money at the problem but that might not necessarily be the solution, rather astute management and product quality improvement will surely keep you in good shape this period.

Are you a business owner and in need of any of the following services?
Business Diagnosis
Industry Research and Analysis
Market Research
Organisational Design & Development
Business Plan Preparation and Evaluation
Business Strategy Development
Customer Relationship Management
Business Proposal Writing
Business and entrepreneurial training
Idea’s screening & development
We have a quick solution for you.... For more Info, CONTACT: 07067192028 BBM PIN: 5EE837E8 EMAIL: malik11599@gmail.com