This archive report was first published on 2 September 2019.
Surviving a Bad Economy: Expert Advice ¶
Published on September 2, 2019
The current economic downturn has left many small businesses and employees struggling to stay afloat. In this article, we will explore expert advice on how to manage cash flow, market your business, and keep employees motivated during tough times.
According to Ken Gichinga, Chief Economist at Mentoria Economics, cash flow is king for small businesses. He advises businesses to be prudent with their costs, have a buffer for a couple of months, and be cautious when launching new programs and initiatives.
Another expert, Joanne Mwangi, CEO of Professional Marketing Services Group and Chair of Federation of Women Entrepreneur Associations (FEWA), notes that clients have stopped spending money on communication across the board. She suggests that businesses use their reserves and savings to stay afloat and that government is the biggest spender, making it essential to communicate effectively during tough times.
Mugo Mutembei, CEO of Bristem Developers, shares that his business has been affected by the economic downturn, with jobs completely down in the construction industry. He advises businesses to do an annual budget that caters for annual operations and to work with savings from previous profits when there are no projects.
Finally, Habil Olaka, CEO of Kenya Bankers Association, cautions that giving credit at own risk is not advisable during tough economic times. He suggests that businesses maintain a tight lid on expenditure, reduce waste, and incur only what must be incurred for purposes of generating revenue.
By following these expert tips, small businesses and employees can survive and even thrive during a bad economy.
