20 Tips for Keeping Your Small Business Afloat
20 Tips for Keeping Your Small Business Afloat
When tough times hit, like an economic recession or a pandemic like the current COVID-19 pandemic among other challenges covered over at runrex.com, small businesses are usually the ones who are most vulnerable to going under. This article will look to help by highlighting 20 tips for keeping your small business afloat if you have fallen on tough times.
Take a look at the big picture before making any decision
If you are to keep your small business afloat during tough times, then the gurus over at guttulus.com recommend that you step back and take a look at the big picture before making any decisions. This is because decisions made hastily may have a big impact on your business down the road. For example, firing an employee to cut costs my affect existing customer relationships leading to you losing repeat business down the line.
Conduct a thorough review of your staff
You should always regularly conduct a thorough review of your staff when things are running normally and during tough times. This, as is discussed over at runrex.com, will ensure that not only are the right people employed, but each of them is doing their jobs effectively, preventing wastage of resources.
Ensure access to cash
Another tip that will keep your small business afloat during tough times is making sure that it has access to cash when you need it. This means visiting a bank loan officer and finding out what is required to obtain a loan as well as obtaining a line of credit in advance to fund possible short-term cash-flow issues as is covered over at guttulus.com.
Establish strong relationships with banks
As a small business, you should also look to establish strong relationships with banks and bankers as this will come in handy during a time of crisis, helping you to remain afloat. Business owners who had such relationships when the COVID-19 pandemic hit, were able to access PPP loans more easily for example.
Don’t sacrifice quality in an attempt to bring down costs
While you may want to keep a handle on costs during tough times, an important tip if your small business is to remain afloat is making sure you don’t end up sacrificing quality at the alter of costs. Cut costs in other areas that don’t affect the quality of your products or else you will end up losing customers when you need them most.
Switch up your model
During times of crisis, another way through which you can keep your small business afloat is by changing your business model. This, as per the gurus over at runrex.com, will enable you to continue providing core goods or services in a way that is more beneficial to your business.
Tighten up your budget
Yet another tip that will help keep your business afloat during the tough times is to make sure that you reassess your budget and tie up any loose ends. As is explained over at guttulus.com, you should cut things that are no longer essential, such as bagels in the break room, magazine subscriptions for the waiting room, among others, while taking care not to affect the quality of your products or services.
Avoid at all costs dipping into your business for personal expenses
For many small business owners, their business is their lifeline, and when things are tough, it can be very tempting to dip into the business to cover personal expenses. According to the experts over at runrex.com however, you should avoid this at all costs. This will not only bring with it complicated tax implications but will also run your business to the ground.
Renegotiate your debt
Most small business owners worry about debt the most during tough times, as, in most cases, lenders and banks don’t usually care about whether you are facing tough times. Rather than ignoring debt and stopping payments, you should renegotiate your debts with lenders. In most cases, if you have built trust through your strong history of making payments on time, they will be willing to restructure your debt to your benefit.
Renegotiate your leases
Other than your debt, you should also look to renegotiate your leases and contracts if you are to remain afloat during tough times. This means renegotiating your rent terms, among other such contracts, and if you have a strong relationship due to your history of making payments on time, you will come out with a more favorable deal.
Review your inventory management
Also, as is explained over at guttulus.com, another tip that will help keep your small business afloat during tough times is reviewing your inventory management to see if there is anything that you can do to reduce your inventory costs without sacrificing the quality of your goods. This can include looking for drop-shipping alternatives to remove shipping and warehouse costs, among other strategies.
Focus on what you do best
According to discussions on the same over at runrex.com, many small businesses also find themselves adding too many products or services in a bid to diversify, which can lead to wastage of time and money while also damaging your core business. In times of a crisis, to stay afloat, you should cut the excesses and focus on what your business does best and what is most profitable.
Draw customers from your competitors
Remember, if things are rough, you are not the only one affected as your competitors are going through it too. If you are to remain afloat, the gurus over at guttulus.com recommend that you try and draw customers from your competition. Research your competitors and find out what it is you can offer to attract their customers to become your customers.
Leverage your current customers
When times are tough, your current customers become even more important as they are an opportunity to make more sales without incurring costs that come with finding new customers. If you are to keep your small business afloat, you should shift your sales focus towards your existing customers, through excellent customer service and identifying their needs and meeting them if you are to be successful.
Avoid cutting back on marketing
Don’t make the mistake many small business owners make during tough times, and that is cutting your marketing budget significantly. During these tough times, you will need marketing, even more, to help consumers find your products or services, which is why you should avoid cutting or eliminating your marketing budget.
Switch up your marketing strategy
While it is important not to cut back on marketing, if money has become an issue, the gurus over at runrex.com recommending switching up your marketing strategy, pivoting towards strategies that will bring you the best results while keeping costs down. This may mean focusing more on social media marketing, and switching to organic strategies, and so forth.
Monitor your business’s credit scores regularly
When tough times hit, it becomes very difficult for businesses to borrow, and small businesses are usually the first ones to feel the pinch. If you have poor credit ratings, then you will be worse off, which is why, as covered over at guttulus.com, it is important to regularly monitor your credit scores if you are to keep your small business afloat.
Monitor your credit ratings as well
While it is important to keep on top of your business’s credit ratings, the subject matter experts over at runrex.com also recommend that you keep tabs on your credit rating as well. This is because if you have a good personal credit, as well as a good business credit rating, you will stand a better chance of accessing the money you need when you need it.
Look for more business-to-business deals
During tough times, looking for deals that allow you to sell or buy in bulk is a good strategy, which is why you should look for more business-to-business deals if you are to remain afloat. This will come in handy if you are not getting as many customers as you did before due to the crisis.
Think about the mid-term as well as the short-term
When there is a crisis, such as the current pandemic, many of the trends that arise are short-term, but sometimes such a situation can lead to consumers changing how they act after the crisis passes. It is, therefore, important to think mid-term as well, anticipating any changes that may be here to stay even after the crisis passes and adapting your business accordingly if you are to keep your business afloat long after the tough times have gone.