1 Accept new payment methods

Credit cards

Have you set up a merchant account allowing your buyers to pay via credit card? This is an easy and convenient method for you and your customers. It is also one of the best ways that a small business can ease the flow of funds from customer accounts to their own, eliminate cash flow problems. Your customer doesn’t have to deal with a cheque or bank transfer, they get credit payment terms and you get your payment in just 4 days. It’s a win win.

Procurement cards

Many Local and Central Government Agencies are using procurement cards to pay for frequent low to medium value transactions. Being able to accept the card can get you onto a list of capable suppliers.

It doesn’t have to be pricey.

The ITS Bureau service will process your invoices into procurement card transactions for you for just a 25 joining fee and 1 per transaction.

For larger volumes ITS Procurer online can be up and running in 2-5 days at a cost of 350 to allow you to process telephone and mail order procurement card transactions online.

PayPal

Many customers would not like to provide their credit card details on websites which they do not trust. By allowing pay pal payment, your customers can pay by card indirectly.

You could also avoid bank charges by using e-bay/PayPal for all your transactions with your suppliers/customers. This allows you purchase and sell without having to go through any bank at all.

2 Create a low cost variant of your existing business

Primark outperform Marks & Spencers !!

You dont want to undermine your existing business or upset your existing customers who are happy with your current offering, but are some of them already looking elsewhere for a value product.

Instead of discounting your prices can you create a value offering that runs alongside so your customers can choose without looking elsewhere.

Differentiate the product or service: The value product or service must be specific so that you don’t undermine your mainstream product/services. Can you find a lower cost equivalent; this can have a less elaborate package, or cheaper cost ingredients, a smaller pack size, lower service levels, shorter warranty. Take a look at Tesco’s value offering, these are just the same products the cut price stores have always been offering, but now given shelf space by the big boys to give their customers the options without going across the road.

Differentiate the delivery: These offerings are for customers who are looking for a way to save money, not an invitation to existing customers to pay you less!!

Therefore, place them in a separate room, advertise in a separate brochure, set them on a separate website, let your buyers know they exist but let them know this is a low cost option with lower levels of customer experience and product/service differences.

Thirdly, search for new customers

Lots of things change in a recession, and this creates opportunities.

We have all seen the redundant investment bankers on TV. Others will also be looking for new opportunities. Many will be starting new businesses.

What can you offer them: Can you market to the redundancy program with a franchise opportunity, business service or supplies?

Nevertheless, bear in mind that it is not easy to survive- Don’t expose yourself to large amount of debt; let them pay by credit card.