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Too much business can present a big challenge to a small firm with limited resources. If unprecedented demand leaves you struggling to fulfil orders, you risk damage to your reputation and loss of custom to competitors. You and your staff are also likely to experience stress, which can affect decision-making.
On the other hand, popular demand for your goods or services shows you are doing things right. A surfeit of business gives you an opportunity to build your customer base, increase profits and even to expand your firm. But how do you convert increased demand into consistent profits and growth?
The first thing to do when you are feeling overwhelmed is to work out how to deal with the immediate problem - getting orders out on time to a good standard. Prioritise your jobs: those with looming deadlines should be your chief concern; but also think about investing more in customers with potential for repeat business than those which are likely to be one-off sales.
Once your priorities are set, make sure you have the resources to meet them. You may need to order more stock, for example, in which case you will also have to work out delivery schedules. Or you may need more equipment to get the job done. In this case, think about temporary leasing. In both cases, take the opportunity to negotiate better prices.
You may also need help to get the orders out. For technical jobs, consider subcontracting or hiring a skilled worker on a short-term contract. For more straightforward jobs, such as administration, recruit from groups that look for temporary work, such as students. Both options can also help you balance the overall business need to deliver orders with managing paperwork and maintaining customer service levels.
The extra business may be part of the normal ebb and flow of trade, in which case monitor your trading patterns over time so you can prepare in advance for likely busy periods. But unprecedented demand could be sign of growing popularity. Think about whether you can continue to cope with your existing resources, or whether you should capitalise on the demand to expand the business.
Go back to your business plan and refresh your objectives: consider what you will need to meet revised sales targets. For example, you may need larger premises or a permanent member of staff. You might want to invest in a marketing drive to build on word-of-mouth recommendations. When it comes to extra equipment, put hire-purchase agreements in place, so you own it outright after a series of payments.
Getting through very busy periods will require a lot of extra commitment from you. But the extra sales could be a launchpad for sustained success: try not to look at it as a matter of coping, but an opportunity to build a strong and profitable business.
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