By Paul Callaghan
Partner, Moore Oman
The current economic climate is a tough one for all businesses in Oman and indeed the region and internationally. It’s critical at such times to take steps to minimise the adverse affects and put your business in the best position.
Steps to take include:
Review the processes you follow to monitor cash flows:
Ensure you are monitoring cash flows in the best and most effective way. Keep your eyes on the cash! Businesses fail because they run out of cash not because they are not making profits. Do the right things at the right time in the right way.
Revisit your business plan and strategy:
Relook at the services and products you are offering, which customers you are targeting and the channels you are using – the Pandemic has strengthened the use of online and similar sales channels with delivery to the home being the norm. Are you offering this? Can you? Do you have non-core businesses which are a drain on your time and resources – If the answer is yes find the best way to address this: close; change their business model; or sell them.
Be proactive in collections:
Follow up on money you are owed and be cautious about giving credit (when, to whom and how much). Ensure you are top of your customers list to get paid and if you can don’t do credit (consider incentives for cash sales if B2B).
If you have a lot of competition, find out what your customers value and differentiate yourself. Harness the power of social media to drive business and market your services and products. If you don’t have a website / Instagram page / Facebook page, then get one.
These are just a few steps – if you are looking to enhance your business get professional help. The challenges faced today in the economy and the pandemic also offer opportunities – set yourself up to seize them!
(Callaghan leads Moore Oman financial and management consulting. He has spent over 25 years in Oman including 23 years with a Big 4 audit and advisory firm.)