Established businesses can find that their market moves away from them in an almost imperceptual manner. Often the first real inkling that something is wrong, is when unforeseen difficulties occur in meeting the payment terms of creditors.
Businesses can get complacent, and at times even arrogant, towards their market and older businesses in particular will often assign the blame for gradually declining business sales and declining profits, to third parties such as;
What is generally lacking in such businesses, is any real and recent market analysis, to determine whether the market served by the business, is still a viable one for its established offerings.
The output from a sound market analysis will determine whether the business requires;
Once the true situation has been ascertained, and the correct course of action determined, the overall business strategy needs to be changed to reflect the course of action which must be taken to protect the future of the business.
Whilst the key area to be addressed will be the marketing component of the business strategy, the nature of the changes that will be required to be implemented throughout the business, will usually necessitate a complete review of the entire business strategy.
In order to increase sales and improve the cash flow position of the business, attention will need to be paid to;
Any business that discovers unexpected cash flow problems at an inopportune time, will want to quickly establish the reasons, and implement action to immediately rectify the problems.
Good cash flow will result from providing the right product or service, at the right price, to the right market, at the time the market demand for the product or service is at its highest, whilst controlling all of the costs involved in providing the relevant products or services to the market.
To avoid unexpected cash flow issues, established businesses should regularly update their marketing strategy especially in respect to older product or service offerings.
This strategy update should include a sound market analysis, a review of all assumptions underlying current marketing activities, renewing and refreshing all aspects of the marketing mix, and where appropriate, the engagement of a set of fresh eyes to look at the business from a different perspective.