If your business is struggling then you must ask yourself whether you are doing everything possible to survive. What have you done to diversify your business? Are you and your staff putting in longer hours? Have you diversified your business in terms of staff roles, cross-training and what services and products you are offering your customers?
The economic downturn has changed the way that businesses need to operate. This is not the time to carry on operating the same way that your firm was before the recession; you must adapt to the changing conditions.
For instance, many restaurants are now offering a take-away service to supplement their standard income. Your business must be equally adaptable and be aware of where the money is in the current markets.
The fast food chain Domino's Pizza recently announced pre-tax profits of £23m for 2008, up 25% on the previous year and revealed that it grew at a rate of a store a week in 2008 as less consumers ate out due to the current recession.
There is little point in any company in diversifying if your customers don't know about it
"We have 2.7 million customers who we deliver to and a third of those are new customers, and I suspect they are down-trading," said Chris Moore of Domino's.
Reacting to the news of the large profits enjoyed by many take-away chains numerous restaurants have taken this on-board and diversified their business accordingly.
There is little point in a company diversifying if your customers don't know about it; a restaurant that starts producing take-aways must market this so customers can use the new service. Direct and internet marketing are easy ways to get your message out there.
Business Link, the free government advice centre for businesses has advised firms that diversifying is a way that companies can avoid cutting their workforce.
"I think there is a lot of things a business can do to help themselves survive at the moment in this particular climate," said business link account manager Chris Simpson.
"[They should be] looking at diversification, looking to improve processes and manage costs. Don't give up on your staff either, because obviously increasing their skills and their diversification can really help a business grow."
Estate agents, although not necessarily in the small firm market, also provide a good example of diversifying. Staff have moved from selling houses, where demand has all but stopped to renting, where the market is stronger. It is vital to ensure that your staff are working in the areas that will benefit the business and earn your company the most money.
By diversifying your business, you can not only survive the current economic downturn, but emerge stronger from it.
