How to survive bad economic times
As a business owner, economic uncertainty can impact your livelihood at any time. A recent Reckon survey showed that 43% of business owners predicted the economic climate would be their toughest challenge of 2017.
While it can be difficult to make sure you’ve covered all your bases, you can give yourself the best chance of survival by employing general business strategies that will help safeguard your business against economic instability.
Cash flow is king
Cash flow is the lifeblood of any business. There’s a chance that the majority of your businesses sales are on credit, meaning your cash flow could potentially suffer while the payments clear. Take steps to closely manage your accounts and invoices so you know exactly when money is coming in, as well as when it is going out.
Keep your personal credit in shape
Tough economic conditions mean it’s harder to borrow money and small business loans are always among the first to go. Although 89% of the business owners surveyed by Reckon weren’t planning on borrowing additional funds in 2017, it pays to keep your options open. Give yourself a strong chance of being able to bail your business out of any difficult situations with good personal credit by taking active steps to ensure yours is in good shape.
Sweat the small stuff
While it’s important to consider the big picture, the little things in business shouldn’t be overlooked in tough economic times. While some small items can seem unimportant, they can really hurt your bottom line. Check and re-check expenses, identify problem areas, and make the necessary changes. By doing the little things right, you can steer your business from a stormy economic climate to calmer waters.
Never miss the chance to generate new business
Generating new clientele can be particularly difficult during tough economic times, but simple strategies like handing out your business card or mentioning your business to new acquaintances can help change this. Always be on the lookout for opportunities to promote yourself and your business, without sounding pushy.
Don’t be afraid to ask for help
While we may like to think that we are all budding business moguls, the reality is there are always opportunities to learn from others and grow your business. 27% of those surveyed by Reckon said Richard Branson would be their port of call in a crisis, but unfortunately we don’t all have him on speed dial. Even if you’ve been in the business for a while, it always pays to see what business advisors and industry experts have to say. It might be the difference in challenging times.
It’s impossible to completely recession-proof your business, but by following these simple steps you’ll be able to respond quickly and efficiently to any potential threats that come your way.