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[B247]Beat The Credit Crunch

by Adam Ulivi, Ada

By combining hi-tech electronics and robotics with a plush cuddly toy, Fisher Price have created a very close representation of Elmo from Sesame Street which can be brought into your living room. Elmo Live is the first toy to move its mouth in a manner which gives the impression that the toy is really talking and not that the sound it just coming from an internal speaker. Unlike previous hi-specification robot toys, rather than slow or jerky movements, Elmo live demonstrates fluid life-like movements.

The decision to make such a complex robot for toddlers comes as no real surprise since toys have become increasingly expensive over recent years. This is due to their technological improves which have come about in an effort to compete with games consoles. Over the past few years we have seen the likes of Robosapian become must have Christmas toys. Elmo Live is however the most advanced toy aimed at younger children.

Other toys aimed at in the same age range as Elmo Live include Dance With MeTeletubbies. These are priced at almost half the cost of Elmo Live and accordingly their abilities are noticeably inferior. Some believe that because of the current state of the economy, Dance With Me Teletubbies will fare better over the Christmas Period.

Fisher-Price have set their hopes on parents being so impressed by Elmo Live that they will not be overly cautious about spending some of their Christmas budget on this present in order to give their children what they would really like.

Surprisingly Elmo Live is fairly cheap in comparison to other robotic toys on offer. These toys all seem to be hitting the shelves at the worst possible time, just as the country goes through its worst economic troubles in many years. Also in production by Mattel, Fisher-Price's parent company, are a couple of robot dinosaurs named D-Rex and Spike. These are priced around £150 although this is made less surprising as they are not aimed at the same age group as Elmo live. There is also a robotic Dog from Hasbro called Biscuit which can wag its tail and responds their owner's voice. Biscuit costs £180 from most retailers.

Elmo has had a successful history with toys. The Tickle Me Elmo was the best selling toy in Christmas 1996, rivalling the chaos over stock levels for Buzz Lightyear in 1995. Tickle Me Elmo vibrated and laughed when it was tickled. Ten years later the Extreme Edition was released. This version would roll around the floor and say short phrases while laughing hysterically. Hokey-Pokey (Hokey-Hokey in the UK) Elmo did a few basic movements to the Hokey-Pokey and sang along. Elmo live is a large improvement on all these models but also costs nearly twice the price.

How Elmo Live will sell this Christmas remains to be seen. He is still predicted to be the number one toy but the credit crunch could reduce the chaos in stores with shops not selling out quite as quickly as they had expected earlier in the year. On the other hand, parents are expected to provide their children with the toys they really want in spite of the credit crunch, which in the end will help to reduce the economic slowdown.

1. Watch your cash closely

Make cash and cashflow the priority in all your deals. You might be about to win the deal of your lifetime but if it means committing serious cash and relying on income streams from the future you may not be around to enjoy it. Think about how you maximise cash in, and minimise cash out in everything you do.

2. Create reliable cashflow forecasts.

Make sure you know if things are going to get tough in the next few months so that you can prepare for them.

3. Look at where you're spending and consider the value.

Many companies gather a lot of little recurring costs and expenses along the way and they're forgotten about. You can save a lot just by reviewing where your cash is going in the business.

4. Look closely at your working capital.

In tough times, your customers will try and stretch out their payment terms and your suppliers will push for early payment. Keep to the contract terms and try and negotiate for improvements.

5. Credit check your customers.

You don't want to be caught out by a customer going bust while still owing you a chunk of money. Keep close tabs on any poor payers.

6. Review your marketing.

Are you still using marketing messages designed for a fast growth boom market? Perhaps you need to reconsider the current economic climate and take a leaf out of the recent M&S "a meal for 2 for under £10" campaign.

7. Watch your fixed costs.

The hardest thing in a recession is to manage your unavoidable fixed costs. The longer you're tied in, the less flexibility you have. Look at where you can improve flexibility in your expenditure.

8. Watch out for fraud.

With rising fuel and living costs the temptation for staff to take a little extra increases. It certainly won't be everyone but internal fraud is still one of the most common factors impacting business. You need to have strong controls and robust procedures to prevent losses.

9. Broaden your customer base.

With the potential for companies to go under or reduce their spending, reliance on one or two large customers could be fatal for you if one of them fails or cuts back their purchases.

10. Look at your financing.

As the market contracts, you need to be careful about breaching your banking covenants or finding that the facilities you were relying upon are no longer there. You cannot wait until you need the money to arrange new facilities and you must make sure that you have a Plan B in the event that your current lines of credit are squeezed.

It's not the first time things have been rough in the economy and it won't be the last. There are many companies that thrive and survive in these kinds of markets whilst others go to the wall, so just make sure you're in the right crowd by following these tips.

Article Source : Pg. 14

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Both Adam Ulivi & Andy Warren are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Adam Ulivi has sinced written about articles on various topics from Digital Photos, Family Concerns and Computers and The Internet. On October 14th, you can buy in the UK. If you want to make sure you don't miss out on this toy, it is recommended that you order as early as possible as s. Adam Ulivi's top article generates over 14800 views. to your Favourites.

Andy Warren has sinced written about articles on various topics from Family Concerns, Finances and Debts Loans. Andy Warren is the Managing Director of Marshall Keen Ltd. He is a chartered accountant and successful CFO, FD and entrepreneur with extensive experience in M&A, Corporate Finance, Business Growth and Exit Strategies. Marshall Keen. Andy Warren's top article generates over 18100 views. to your Favourites.