Hey guys, welcome to the Maresa Ng Official Channel where we help businesses to grow. Today, I’ve got a question for you How many of you are Part of the Malaysian economy and you feel that you’re facing a looming Recession next year and some of you may even feel that you are facing a recession this year So many Malaysian SMEs that I know, and I speak to businesses on a very regular basis You know, I found that a lot of them are complaining and they are saying… Well… We are not getting as many customers as we used to; customers are not spending It’s getting very very difficult to be able to hit our our Our last year’s revenue; in the year before that, you know, so things are coming downward And we’re not sure how we can what we can do And so that’s why I came up with this video because I think that you know this is gonna help you start Thinking of some ways that you can sort this out without thinking. Oh my gosh. This is over. My life is over now Don’t think that way. There’s so many things that you can do… Okay, so I’m gonna get into it Yeah, okay, so number one be clearer with where your cash is going You know you want to you want to think about How much cash you’re holding. You know, and this is the thing, we have to be aware with what takes cash in our business you Know what takes cash is our inventories. You know what type of stocks that we buy Or we just going all out and saying oh, I like this friend You know oh, I like that merchandise And you just go right ahead and buy or are you really assessing with whether it’s fast moving, the customers actually want to buy But be very very clear with what you intend to use your cash to buy stock Receivables as well. You know, a lot of the time We’re so caught up with going out there getting more sales more sales more revenue more sales and you know But it doesn’t translate into cash and that’s where collections come in for those of you who have long collection cycles You know you got to be able to make sure that the cash comes in so be very very clear with having strong cash holding During a recessionary period. Number two, having smaller having a smaller office You know having a smaller office where you’re a lot less, you’re a lot less heavy, and you’re lighter You know, a lot of businesses that I know, and very very big businesses They are actually moving to smaller offices because “Hey, you know, why we’ve got to have such a big office? I’ve got so much of utility bills to be keeping up” and that causes the Stress for the business owner to try to keep up with all these heavy expenses And then there is less profitability at the end in a day, but are these fixed expenses really necessary. We’ve gotta ask ourselves that Number three, and this comes down to a little bit about that smaller office But number three is about having leaner teams. You know having leaner teams is this. You know really start asking yourself How many of these positions are really important to be full-time. You know, could you outsource some of these positions? Could you get them part-time? You know, could it be flexible roles? Where you don’t really need to have them in the office You don’t really need to have this big huge space for like 50 to 100 people but you could have a smaller space, be more effective with that space, and Get these roles to be working off-site more. You know and and a lot of the time there are many other options like Shared offices, you know, that you know you could have teams off-site Temporarily for projects, and this could also help you instead of having them all full-time and they’re all sitting in your P&L weighing you down Number four, invest in systems Investing in systems could help you to reduce a lot of error, a lot of redundancy You don’t need to increase more and more people, like for instance Companies that I know that invest in an accounting system They are so used to doing everything very manually so you need a lot of people. But the minute you invest in an accounting system I know accounting teams, admin and finance teams with about five people, they reduce That count to about two, and two people are able to manage The same amount of transactions because there’s a system in place. Number five Investing in your clients. Now, this is a very very important. You know if you think that you’ve got less customers now It’s so hard to get customers. Well the customers that you already have. What are you doing with them? You know are you Investing in them? What are your retention strategies? What are you doing to retain your clients? What are you doing to increase the rapport with your clients What are you doing to educate your clients about more of what you have to sell? You know, and this is a wallet share strategy Yeah Wallet share strategy, instead of continuously investing and getting more customers, more customers, more customers You know, and if you are in a place where you’re struggling with getting more and more and more customers Then what are you doing for your current customers and Could they be buying more from you instead of getting more customers to buy from you so that will also help you to Retain your customers and at the same time continue to help you to generate more sales through the relationships that you’ve already got Number six! Number six is a really really big one You know, and if you’re one of those and you’re feeling the pinch, you’re feeling the “ugh”, you know You know, things are declining, and I don’t know whether I can keep going then Prioritize your local operations. Prioritize your domestic operations. This is where you started Focus harder on it. Focus harder, make sure that it’s stable. It’s a very very good opportunity To look into your systems look into your team you see a lot of Malaysians And I know this… Um… a lot of people are saying… Hey! You know, in Malaysia is just boring… People are not spending You know, since the GST, people are just like… Ugh… They are tightening up their wallet before they take out a dollar, they are just going… Ugh… Do I really need to buy this… So, a lot of people Are you know, pinching on spending and you know, but I don’t blame them. You know, consumers It’s just also the living costs are increasing, but this is a very very important thing If you feel that in Malaysia, and you think that if you go to some other place, you know, places like Vietnam They are very very aggressive. They are on a high growth, and you think… Oh, I think that’s where I gotta be… You know That’s where all the action is… You know, in other places in Asia… Sure, I think that’s fantastic But, you have to make sure that you’ve got your Operations domestically in place. If you go to this other country, you go out there and you multiply in two or three different places, and it takes your attention away and you multiply your problems if This part isn’t stable. So if you feel and you really truly assess, and if you need some help with that Please reach out to any business professional. We can help you, but really assess Are you ready to expand to another country? Are your teams ready? Do you have enough leadership here? What about your systems? What about stability of your operations? You’ve got to be able to look at some of those things before you start moving outward Otherwise a good decision is to try and stabilize here until everything is over, and then you move out, all right? Number seven, hold off on very very heavy Capital expenditures. You see, if you go into heavy capital expenditures, likely you’ll need the bank’s help, you need investors help You know and and there will be some kind of repayment. But hold off on that, you know, if you think oh, you know 2018 was the year that we’re going to invest in a new factory, you know, in a Multi-million dollar machine. Yeah, that’s great, but you also have to make sure that you have enough Cash flow generating in your business to be able to afford those sorts of heavy capital investments. Instead, look at investments where you invest back into your company in terms of being more efficient, more effective, investing in your team, investing in training, Of course investing in your customers or customers you’ve already got, investing in marketing, lead generation versus very heavy capital Investments that get you even heavier in the face of a recession And now, you don’t want that. Number eight! Number eight is a very very big one. Monitor monitor or remove Non-performance in your team. Now, this is really really important because you know sometimes you get to a recession Your belts are all tight, you need to have your team producing productively Harder than any other time. So you can’t have the same Fifty or a hundred people doing the same stuff. You might have to go down to 30, you might have to go down to 20 You might have to go down to five, and still produce That’s where you got to remove the deadweight, and there are some deadweight some people who won’t lift harder They won’t strive harder And there are some of these people that have non performance and are not willing to change you’re not willing to pull your weight you’ve got to know how to measure what they’re doing or The last ticket is, you gotta be able to let them go. The non-performance in your team, You’ve got to identify who they are so that they don’t drag you down along with your business. This is really really critical Number nine… Number nine, and if you’re facing a recession and you’re getting all pinned up against the wall And you’ve got you feel you’ve got nothing else you have nowhere else to go, number nine! Number Nine is focusing on training your team When you train your team if you’re focusing on quality. Now, remember this, like I said You know you’ve got maybe you’ve got less customers now But you want to take care of these customers you want them to maintain with you You don’t want them going anywhere, focus on training your team, focus on quality instead of quantity Yeah, and because maybe you have let go of some people, you know the bunch that you have with you are the people that are Going to stick it in through the rainy day with you So you gotta train them and make them better, make them great, and your customers can feel the difference as well. You know… A lot of these points that I’ve shared with you, all these nine points I’ve shared with you, what we’re really doing and this is a very very powerful strategy You know if you already feel that things are kind of flattening out and you’re going and I’m on this slope And I’m not sure how I can stop it… Well, hang on If it’s already happening. It is a great opportunity for you to consolidate You know I’ve talked to a lot of business owners that come and they reach out to business coaches like us, business advisors Why? Because they’re taking this opportunity that “Okay, well things are slowing down… I’m not gonna try and push this big boulder up the hill I’m not gonna try and swim up the stream like an Olympic fish, but what I’m gonna do is I’m gonna come down to this yeah I’m gonna take care of my clients, my current customers, but I’m gonna take this time to train my team I’m gonna take this time to Consolidate. I’m gonna take this time to make myself even stronger so that when all this blows over I’m ready to conquer out the market again.” So a lot of it is about and a lot of what I’ve just spoken about is about consolidation And it’s also about making sure that you’re stronger when the wave is done, Boom! You go into attack But you’re in a much better place. You’re in a much better Efficiency to be able to do that… So guys Like this video if you liked it right at the bottom, Like it if you liked it. Share It if you feel that there is somebody else out there that’s just going “Argh~~ What do I do?” Share this video with your friends? You’re entrepreneurs as well and of course subscribe Subscribe to my channel if you feel that whatever I share has been useful for you And you want to be able to get more because guys remember this It’s all about having a great business and a great life because being in business is about having more life Take care and see you next week

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