Until that long-awaited moment arrives, it's important that your company remains active and healthy.
But how would it be possible to accomplish such a feat during such an unstable period?
Here are some tips from the DB Tesser office for companies facing difficulties:
1 – Depending on your company's current situation, one possibility for recovery is downsizing. However, this requires a solid business plan that incorporates new structuring methods. This new plan can mean improved performance or even the survival of your business. And don't forget, the plan must move from paper to practice.;
2 – Study ways to differentiate your product. Look for successful companies in your sector and see the different products or services they have revamped. Remember that many times a new product isn't necessary, but rather a different model of a product you already sell/import.;
3 – Know exactly what your shortcomings are that need to be overcome and the real effects on your business. Losing clients or contracts is already part of the daily life of an entrepreneur; the important thing is knowing how to manage this volume of loss. Renegotiating contracts is a chance to keep them.;
4 – Save money. Cut everything that isn't essential to the business: costs, reduce inventory, downsize your structure, extend the payment terms of your debts;
5 – If the problem is liquidity, focus, for example, on your 3 (three) best products. If there is no cash, focus on the best one;
6 – Expand your network of contacts for these specific products. Reducing the number of products may allow for better segmentation.;
7 – Accelerate your company's diagnosis. Analyze it from the inside out. Make quick decisions; and,
8 – Analyze your market reputation and how it can be improved. A strong sales presence can lead to healthier communication with clients or potential clients, positively impacting negotiations overall.
Although such adjustments and demands represent time and money, the fact is that they will bring benefits not only in times of crisis, but will leave your company with a more solid foundation for its recovery after the crisis.
In all cases, always have good legal support, maximizing the desired parameters with greater speed and lower costs.
Comments by Fabricio Norat, Lawyer. Areas of Expertise: Customs Law, Tax Law. Bar Association Number: 431.023.
