As with everything what goes up, must come down; but be prepared when
it does! Here’s some age old advice that helped businesses stave off
the last recession and will do so again. Builder Superstore doesn’t
just offer great prices on building materials at huge stock levels – we give helpful tips too!
Top Tips for Surviving the Downturn
Cash cash cash – make an extra effort to get money in, even lower your terms with new customers and keeping a closer eye on cash flow will enable you to survive for longer.
Trade Account – try to increase terms on all your accounts however keep to existing levels of debt for as long as possible.
Be absolutely clear on your “value proposition” – Have no doubt as to why customers should use your business?
Remember, there will be a “flight to quality” – make sure that your quality offer is as high as it ever has been and try to ensure delivery of real quality on every job with truecustomer follow through.
Make sure ALL your employees know the value proposition and can articulate it.
Borrowing – If you have an overdraft, be prepared for it to be halved by your bank, can you survive on less?
Be realistic, do not kid yourself ie do not try and make the numbers work. Spread your risk across customers.
Do not use the R word as an excuse, in recession the value of total sales should still grow, but it will be at or below the rate of inflation as measured by RPI for two years.
Give it Two More Years
Construction will remain in recession for the next two years due to
higher materials prices according to a survey published by the
Construction Confederation. As the market slowdown is worsened by
increased energy prices and materials the Construction Products
Association says that building output is expected to shrink in 2008 and
2009.
This survey asked respondents how they had faired in the past two years
and 17% of contractors reported a drop in the second quarter of 2008
compared with the respective period a year ago.
They also reported that output dipped in all sectors compared to the
first quarter, most notably in 26% reported a drop in new public sector
housing. A much higher proportion, 48%, showed falls in private
housing. Whilst wins are still to be had in social and affordable
housing, all this could change when Gordon Brown’s coffers run dry and
spending in this area is thwarted.
Looking for Paving or Tiling? Speak to Builder Superstore
With next-day delivery to most of the UK, a wide range of tiles , paving , grout , adhesive and sealant , we can supply all of your tiling and paving needs. We offer secure payment facilities so you or your client can choose the tiles and paving you want and order them from us with complete peace of mind. Browse the site to find exactly what you’re looking for, or call us on 08000 192 405 or email contact@buildersuperstore.co.uk
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