SMEs in Spain and some possible measures before the Crisis

SMEs in Spain and potential measures to the crisis

I go on vacation, ... ... ... ... .... It is now summer 2008, and business and teaching has declined (as always in August) to a minimum, so I think it is time, and therefore leave to remember recent queries from companies and students ... What can we do ?...... ?......¿ As you see in Spain are facing one of the most serious crises of recent decades: uncontrolled inflation, the upward trend in interest rates, the acute crisis in the construction industry and its inevitable ripple effects, high oil hikes, along with confirmation of rising unemployment, a drastic drop in registrations vehicles and apparently the short steps from the government seem to arise, to which is added an excessive hardness finally accessibility for SMEs financed by the Bank.

What can we do in SMEs ?........ Because, I think, on my frame of mind, every crisis is an opportunity, ... ... ... ... ... each change in the winds, there is a possibility of refocusing (¿moving the candles?) ... ... .. and I know I still believe that a crisis is not necessarily a problem, bring negative consequences, but you can train structures, forcing refocus, and get hardened to companies and individuals in times of adversity ... ... And you know that after the storm comes the calm.

And here I am ... ... ... on the coast of Portugal, enjoying a few days, and between the beach, visit some people and gastronomic tour, try to summarize some of my ideas in answer to some questions that I did before my summer break.

What measures should be taken before the crisis a SME current business volume reduction, unpaid, and constriction of credit in financial institutions ?....

• Above all, without fear, anticipation of the necessary management measures • Make and procedures, and current stronger than ever, to take the necessary decisions and not do it late. (Accounts up to date and does not serve only to fill the Treasury tax, delivery notes and other documentation of clients properly formalized, consider hedging business risks, etc, etc) • Work more on income and structures, and less on the tacañeo with costs. • Raise the level of communication between the team that we are in our company, raising awareness to all of the general economic situation and the particular company

• Diversification of our suppliers of money (banks ... ... If you had 3 now we may need 6) • Measurement and study of enterprise risk coverage • Work on the differentiation and competitive advantage in the sales section

Perhaps from an analysis of the balance sheet and P & L, working in areas such as: • ensure liquidity in the cash deposited in banks (not always) Verify availability of investments or sight, special care with valuation dates, Similar concepts and Control PMC ex. enlargement and try PMP • Study the improved coverage of our clients' risk, scheduling and risk management protocolising collection, understood in its different phases: o Establish decision process acceptance of risk in the study the orders received or rely on third parties (insurance companies) to enhance the quality of our sales or study and try to reduce the PMC (average collection period) to offer prompt payment discounts, etc.. o Make a special emphasis on documentary quality of our relationships with customers, orders, contracts, invoices, etc., or raise a perfectly formalized its own art, and capitalization, risk monitoring and anticipation of actions to take or consider a sale is a gift that we do, while not charged. or position clearly in our processes, that is, turned a receipt, a promissory note or a confirming or Remember that the risk of a customer there from the moment we offer our products, up to 5 days ( for example) have entered the note in our account of the Bank (could come back?) • Minimizing operating stocks and work in progress, managing them in the most effective way possible, and stronger means of control .

• Verify current coverage of our fixed assets, ships, machinery, furniture, computers, etc., regarding business risks that may arise, and the coverage that would arise if a disaster occurs. • Review and expand the PMP (Middle Period Payment) requesting from our suppliers, this differentiation with the right tools and deciding that the price of one euro payable to 90 days is not the same as that payable to 180 days.  For example: 5% interest rate now days is: 02/07/2008 hoyalternativa value to -> 1.000,00 03/10/2008 90 987.65 alternative b -> 1000.00 11/03/2008 180 975.61

• Check our NOF and our FM, and whether the medium / long term and in accordance with our Strategic Plan, holding the balance and financial stability is predicted or if not, do not hesitate to global or partially restructure our financing sources . • Even under the principle of shareholder lazy to remember right now, that perhaps the company's partners have savings deposited in banks, which at best ... ... do not you offer the same return that we can give, from managing our operating account ?........... • In the chapter on Sales, cause the Point of Contact with the customer, call tracking, complaints, (raise our quality of active listening), wrapping paper, etc. are also the best and differentiators. or wild animals that come to mind: (not put gates to the field)  If we are in good financial position .... why not offer 180 days instead of 90 we were doing? (Note the funding especially now, and plan the conclusions)  Why not give 10 year guarantee on our products ...?  Why not offer "naked tenders" and peeled as our client budgetary requests to us and our competitors that offer insurance? ...

 Why not systematize after naked tenders, provision and achievement of yaks ?..... • Yake's: Since we have this, you would need to have spares in case of need, as you have done this installation would need to rush out there .... ... ... Etc.etc since  Create new products with market differentiation

For example .... • The project roles zero equals a cost reduction, and is a consistent but not blown process • The change of 100 ads our media a month for 20 ads per month, is consistent but totally blown because it reduces our image to others and our sales capacity (more precisely now that we need) In conclusion, and perhaps that is sometimes missing is IMAGINATION face of adversity, and thought of TEAM, virtues that I think as always and also at this time especially.

Well, ... ... ... .... I hope that some of the questions raised have been answered, encouragement and especially you know that you have me at your disposal, as always, hola@jesusdublino.com