This is no time for complacency in business, nor is it a time for being smug if the effects of the credit crunch have not yet hit home. Few are immune and anyone that says they are not worried by what is going on in the economy is probably not in touch with reality. That said, now is the time to be positive, to examine your business, to really know your market and to look for opportunities. 

At Crosswater, that is exactly our strategy. The essential and most obvious first step has been to ensure that we are not making any unnecessary expenditure by understanding and controlling the cost base of the business. Even so, whereas some companies are pulling back, we are retaining our marketing budget and continuing to market the business in exactly the same way as we have done successfully for a number of years, utilising PR, circulating our brochures and advertising at the same rate.

Equally importantly, we are making sure our sales teams are well equipped with the relevant tools to do their job. Consequently, we are constantly developing and delivering new products to market, with many customers involved in this process.

The Crosswater ethos of design, development and innovation is important in allowing us to achieve this.

In 2009 we will be increasing the number of tap ranges, adding five more to the collection. Aspirational products account for the vast majority of our sales so, although it may be a tougher market, people still want the newer, design-led products.

A key benefit to our business is that refurbishment is a large part of our market and, luckily, because people are choosing to renovate and improve instead of moving house, this is an area that has not experienced the downturn to the same degree as the new build sector.

One of the unique aspects about brassware is that it offers a relatively easy and economical way of upgrading to create a new look without changing a bathroom's whiteware. Another aspect is that showering is still a huge developing market, both from a luxury perspective and because people are coming to appreciate the savings it offers in terms of water and energy costs. As a consequence, we are seeing shower valve sales increase year-on-year.

Behind all of this, it is essential that service levels continue to improve so we are not taking costs out of the business that shape the levels of service that we provide.

We are tremendously focused on our customers and their loyalty cannot be underestimated. Our sales team provides an honest assessment of our customer's views and outlook. Wherever possible, we adapt our business accordingly.

At Crosswater, we are very fortunate that we are ahead, with like-for-like retail sales up 18%. Even so, I see the first half of 2009 being incredibly tough. Obviously, we are working towards growth but, at the same time, our feet are firmly on the ground and we know that we are only as good as the previous  day's sales