International Webinar 2022 - Recession Proof business Strategies for 2023 – Part 13

Malaysian academics explained that one way to withstand a recession is to control cash flow. Many entrepreneurs are only concerned with and pursue big profits, but pay little attention to cash flow or cash flow.


Building a brand in business is important. With a well-developed brand, it is usually followed by high sales so that the incoming profit increases. However, if the management of cash flow in a business is not managed properly, then the business will soon be out of business.


There are also many business cases that went out of business even though the profits generated were large, but they ran out of cash flow so that operations were stopped, management could not pay salaries, bills piled up, so the company's performance decreased. To keep your business cash flow healthy, it's a good idea to know some of the following tips for maintaining cash flow or business cash flow.


The first thing that needs to be done is to give priority levels to spending. Basically, every expenditure has a priority level that must be calculated correctly. There are expenses that have a big impact on business progress and there are also expenses that don't really have an impact on business. For that, before making a decision to spend cash, try to observe it first, is it something that is important and can grow the business, or can the expenditure be postponed?

Next you need to know production costs & total expenses to maintain business cash flow. Knowing in detail the total expenses during the production period can prevent you from setting the wrong selling price. By calculating the right selling price plus business profit, your business cash flow will remain healthy. Another way that can attract a lot of buyers is to provide discounts on the products you sell, but keep in mind that the discount price should not be below the cost price.


Next, you also need to implement a product bundling strategy. Product bundling or merging of products is an attractive sales strategy for consumers. By buying only one product, consumers will get a combination of several products. The benefit for business owners is that more products can be sold, thus having an impact on increasing business cash flow. For example, in restaurants, food and beverage package menus are usually available at lower prices than the regular menu.


Another thing that can be done is to offer higher prices to match production costs, encourage repeat purchases of customers, delay adding inventory, and other things. In principle, to control cash flow, we need to pay attention to expenses and increase income.


The above material was presented by a presenter from Malaysia in an international webinar held by STEKOM University in collaboration with Universities from Malaysia, PRC and various other parties. The title of the presentation brought by the presenter from Malaysia was "Recession-proof business strategies 2023: Malaysia's Economy Perspective." The presenter's name is Hafizah Abdul Rahim who is a senior lecturer and research fellow at the center of excellence for social innovation and sustainability, faculty of business and communication at Universiti Malaysia Perlis.


This international webinar activity is part of the implementation of STEKOM University's commitment to increase various international activities. This was done in order to realize the vision to become an international-class university. Various international activities carried out by STEKOM University continue from year to year. There are international activities that are sustainable and there are also some international activities that are not sustainable. All types of international activities are accommodated and regulated by the International department of STEKOM University.