Romy Taormina

Psi Bands - Nausea Relief Chief/Co-Founder
Pacific Grove, CA
http://www.psibands.com

    Survival Biz Strategies - When the Going Gets Tough, the Tough Get Going!

    February 20, 2009

    I keep hearing entrepreneurs/biz owners asking themselves what they can do to stay afloat during these tough economic times. We are all feeling the impact – in one form or another. Some ideas to get you brainstorming on how to survive this economic hurdle. Psi Bands has either implemented all of them, or is in the process of implementing.

     

    P=Problem

    I=Idea(s)

     

    P: Are your vendors/clients going bankrupt and/or not paying bills on time?  

    I: Receivables insurance. Just heard about this the other day. The idea is to insure your inventory with retailers who carry a lot of your product. It is a way to protect yourself from clients who may get into financial trouble/bankruptcy. For those not paying their bills on time, get on the phone with them and find out what they can manage - maybe you collect the debt over a period of time, but getting the money in the long term is better than not getting it at all. Stay on top of those folks – professionally and firmly. With new clients, see if you collect upfront, or a portion upfront. Consider charging interest on late bills, or offer a discount for those who pay on time or early. We offer a 2% discount on Net 30 terms with a few of our vendors. They are encouraged by the discount to pay early/on time. Helps with cash flow. 

     

    P: Are you inundated by negativity?

    I: At Psi Bands, we are surrounding ourselves with problem solvers and creative thinkers. Savor the Success is one way in which to accomplish this – where we can safely go to get a pick me up, where we know we will be supported through words of wisdom, encouragement, and creative ideas.

     

    P: Overwhelmed and need focus? 

    I: Ask for help. One option is through STS. Another option is through hired consultants, or a coach. Sometimes it takes an outsider to help you see things from a different, and potentially, invaluable perspective. Carla, my business partner, and I receive coaching. It has provided us with incredible insight into ourselves and others, and helps us to build a stronger, more unified foundation, and thus, a stronger business. While it is an expense, the rewards are far greater.

     

    P: Are you experiencing weak or not ideal sales?  

    I: Revise your sales strategy. What can be done differently? A different fee-based structure? New or revised product offerings? Different sales channels? Different packaging for niche markets? At Psi Bands, we are reviewing our sales channels to see where more lucrative and less risky opportunities lie.

     

    P: Feeling inefficient?

    I: What can be done differently? Can you hire an assistant or intern? Are you micro managing and can you relinquish control of some tasks because you have someone else who is capable of handling them? Do you have a system in place for prioritizing your work load? Do you have a set work schedule? Are you really working the number of hours you thought you were (i.e. are you getting side tracked by house hold chores, errands, etc.)? Are your job functions overlapping with others, and if so, can you find a way to set clearly defined job functions so that everyone can be more efficient and accountable?

     

    What are you doing that has worked for your company? Please comment! 

     

     

    Read Romy's other blog entries >

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