Pandemic, quarantine, shipping crisis, recession, and inflation. If you started a small business in the past few years, then as a relatively young company you have experienced more difficult times than some that have been established for decades. Even a multitude of entrepreneur veterans didn’t survive the past few years. In 2020, over 100,000 businesses were forced to close their doors. Maybe you’ve managed to continue business online and actually grow, maybe you’ve endured a slight drop in sales, or maybe you’ve been treading water with no sign of a rescue boat. Either way, here are some things that you can do to protect yourself, cover your bases, and set yourself up for success and growth- yes, even in the midst of a recession.
Don’t wait until you see fire to check the batteries in your smoke detector- Be proactive in seeking out weak areas of your company and fix them quickly. Your superb customer service or grade A quality product may have offset your mediocre marketing, loose budgeting, and moderate efficiency in the past. However, recession will turn those little embers into raging infernos that can engulf a small business in a flash.
Cut costs and tighten up on invoices- It is vital that you manage your money wisely, because cash flow will likely be lower than usual, in a recession. This isn’t the time to be casually throwing money at a new high risk investment or planning on expensive expansions. Focus your funds on what you need to operate efficiently. Find out if you’re bleeding money somewhere and take action quickly.
As far as income goes, you need to have more than one source of income. You don’t have the luxury of putting all of your efforts on one product or service, because it’s much harder to come back from a flop in trying economic times. It may be as simple as making some cookies instead of just cupcakes, or offering remodeling services instead of only new construction. You must find alternative and supplemental avenues to bring in revenue. Also make it a priority to send out invoices as soon as possible,.
Adapt and overcome- During the 2020 pandemic, when businesses were forced to close their doors, many businesses struggled. The ones that managed to survive did so because they figured out ways to bring their goods/services to their customers; whether that be via delivery or virtual appointments for example. Also it’s wise to note that when goods start to cost people more than they are used to, they may seek to find cheaper options, or simply go without some things. However, beware of simply cutting prices, because this can negatively affect how customers will view your product.You must find ways to keep your products and services competitively priced- as well as add value, or improve quality. Free gifts, bulk discounts, membership deals and other perks will attract customers, even though you aren’t offering the bottom line lowest price.
Hire Professionals- Don’t waste time with amateurs or less than excellent help. One of the best moves you can make in hard times is to hire professionals to help your business continue to run smoothly. While it may seem counterintuitive, hiring a professional accountant, bookkeeper, and/or consultant can actually save you time and money. This allows you to focus on more critical areas of your company. Omnis offers bookkeeping, accounting, business solutions, and business consulting services. All of these services are critical to checking all of the boxes and making sure that your small business will weather the storm. Contact us here to find out more about how we can help you grow your small business!
It’s not easy to be an entrepreneur in prosperous days. It’s a much more challenging feat currently. With so many around us pulling up shop it’s hard to stay optimistic. However, as long as you stay on top of things and keep this advice in mind, then you will be in a much better position to handle new problems as they arise. Bottom line: cut costs, stop spending money on things that aren’t necessities, get paid, and hire quality professionals.