A STITCH IN TIME: ACT NOW TO RECESSION-PROOF YOUR LOCKSMITH BUSINESS

We’re in it, whether we like it or not. The UK economists are forecasting a recession until Summer 2023, but the risk of severe downturn has seemingly been reduced by Government’s intervention on energy bills. So, in the meantime, what can companies do to make their business recession-proof to weather the economic downturn?

 MANAGE CASHFLOW

 This should be a priority for every business as it ensures you have enough funds to pay your bills whilst also making a profit. 

• Take a look at outgoings and ask yourself what can be removed to make your business more streamlined concentrating on what is necessary to keep your business running at optimum levels
• Is your bookkeeping fit for purpose? The days of keeping receipts in a shoe box are long gone. If you don’t use it already, think about using a cloud accounting software to give a live picture of where the business is at and highlight any potential problems
• Move regular clients to direct debit to reduce the risk of non or late payment
• Shorten payment terms to help stop any gaps in cashflow
• Keep your bank manager onside by communicating openly with them so that they are more likely to support you if you need to borrow
• Avoid the temptation to heavily discount - instead, offer better value with better service.

 

EXPAND THE PRODUCTS YOU OFFER

The best and easiest way to grow a business is to sell more to existing customers. Think about how you could do that by expanding the services your business offers. How about moving into selling more security systems like the ABUS Smartvest Wireless Alarm System. Because it’s wireless, with really simple ‘plug and play’ functionality it makes a perfect entry-level security system and an easy win for locksmiths to sell to homeowners and small businesses looking to up their security levels. Look for products that offer good margins such as the new ABUS Secvest Wireless Alarm System, a sophisticated suite of products that sets a new standards in burglar alarm systems. It is ideal for retrofitting existing buildings, can be intuitively operated, and is easy to remove. Unique mechatronic components counter intruders with mechanical resistance and simultaneously trigger an alarm.

Look for deals on new innovative products, that includes help with marketing such as the ABUS Touch 57 and Smart KeyGarage which includes a free countertop point of sale, also the X60 cylinder and padlock range that offers ready-to-go marketing materials to easily extend your offering.

  

HOLD ONTO YOUR PEOPLE

Keeping hold of key staff is one of the main challenges in today’s economic climate. Staff retention should be at the forefront of your agenda when anticipating a recession. Although if downsizing is necessary, locksmith businesses can offset this by offering flexible working or reducing hours to make the situation work for everyone.

DON’T STOP MARKETING 

• Market to your existing customers: on socials, by email, however if you usually talk to your customers. Keep talking
• Be clear about what makes your business different to others and communicate that consistently
• Look for new markets to attack: commercial v residential, a different town or area
• Think about using ‘free’ marketing channels – specifically social media. The amount of time you spend on marketing could easily repay you by finding new customers. Local Facebook groups for instance are a brilliant way to reach homeowners in your locale
• Take advantage of any free marketing materials that are available for new and existing product lines
• Shamelessly ask for reviews and referrals – the very best kind of marketing is word of mouth.