How To Manage An Engineering Business In A Tough Economy?
In any business, operations, sales and finance play a crucial role. So, when your engineering firm is faced with a turbulent economy, tune your focus to these three aspects to make the best out of a bad situation.
Take a look at the measures that you can take.
1. Boost Your Sales Force:
When faced with a tough economy, spread your marketing reach for best results. Usually, a small engineering firm has a budget for one marketing resource who ends up working on every task. It is wiser to rid your business of this model. Urge every employee to look for business opportunities and you will be surprised at the inflow of calls. With extra forces marketing the firm, you will be able to leverage contacts to build a database of customers or potential clients. Connect with your audience though social media or engage with them through other channels such as email, SMS, etc. This is an inexpensive way to ensure that your firm’s name is always on their mind.
2. Get A Healthy Mix Of Clients:
Apart from diversifying operations, ensure that you have a healthy mix of clients too. Many companies get into a situation where they are dependent on one high-value customer. It is great to have a few clients bringing in high billings, but if a chunk of your revenue is generated by one customer, you need to rethink your strategy. In a choppy market, you can’t be sure of how long this run will last. As a rule of thumb, land on a mix of high- and moderate-value customers. This ensures that in case you lose a customer, your firm has enough business to absorb the loss.
3. Provide End-To-End Solutions:
Broaden the scope of your business to ensure that a customer gets everything he/she wants under one roof. This makes your firm more enticing to prospective customers. Instead of going to two or three vendors to get a job done, they will save time and energy by handing over the task to one firm. This is bound to bring more opportunities to your business as well as greater revenues. If a customer is getting consolidated service via one firm, he is more likely to shell out a little extra for the added convenience.
4. Keep Capital Handy:
Any business can need capital at a short notice. This could be to cover the cost of large raw-material requirements for a new order or to take advantage of bulk purchases at lower prices. In these situations, it is always difficult to find the required capital immediately. Be prepared by maintaining a reserve of funds that you can rely on. For example, you can take a business loan for engineers to ensure that a lack of funds doesn’t hamper business operations.
5. Build Better Teams:
Design your teams with careful thought. Take the effort to streamline your staff and hire skilled resources who will not only help you work efficiently, but will also know how to operate given the market conditions. This will also relieve you of mentoring junior employees. With more time on hand, you can focus on marketing your firm or developing business. In time, you will find that you have developed an experienced team that will help your business grow.
Should you choose to look for a financial lender to support you in your engineering business, consider Bajaj Finserv. They offer Loans for Engineers with amounts of up to Rs.15 lakh and feature easy eligibility criteria and minimal documentation. Supported by market-friendly interest rates, they are the ideal lender for your business.