Present uncertain economy is enough to make a small business owner’s hair fall out, bowl more than from a stomach ulcer or scrape up a rash that could cause customers to consider another place for service or product. The good news is that we know the economy may turn around, in time. Your job is to work smarter and keep your business moving forward until then. That means taking a hard consider the business of your business.
As small business owners we are good at what we do and make. Problems arise when we spend too much attention to our product or service and not enough to managing the business itself. Granted that is the part that usually mirrors a dreaded “ugh, ” but it is also the part that can indicate the difference between success and failing. Focusing on your financials, the people which make your business possible, and your eyesight will help ensure your survival in the current economy and beyond.
Re-Mind Your Business
Cash in or Cash Out I am sure you have heard this a thousand times, however it still needs saying. “Cash is definitely king. ” A business is more more likely to survive in a good or bad economy along with good cash flow than with revenue. One does not necessarily mean the other. Small business owners usually have problems with cash flow no matter the particular economy. To improve cash flow do a price analysis of your business. Look at areas where you can save money such as bank plus credit card charges; negotiate with lenders for longer payment arrangements. Barter for services or products with suppliers. If you offer credit to your customers, cut this down or out and be more aggressive with collections. Consider outsourcing techniques services instead of hiring another employee. There are many freelancers that are experts in specific areas such as accounting and bookkeeping, website design and operations plus marketing and public relations that can cost less than an employee, benefits included. Be innovative in reducing the cost of your day-to-day operations without sacrificing the quality of your product or service.
If you do large jobs, ask for a payment plan that includes a deposit. If you undertake large contracts such as janitorial services for major corporations, invoice earlier and ask for early payment or even offer your customers a discount if they pay the invoice within a particular time frame. In a poor economy, big corporations are looking for ways to save money too.
If you need help with your cost analysis or cash flow projections, ask for it. Worcester has many free and cheap resources to help you develop your survival tactics. For more about 소액결제 현금화 review our own website.
While cutting expenses is most important, cutting back on marketing, marketing and public relations during a poor economic climate is a big mistake. Marketing and public relations are what gain you new company. When times are hardest is the time you want to shine even lighter than before. If you do not let your customers know you are still on board, they might forget about you when the good times resurface. And they will resurface.
Develop a no cost advertising plan that includes building media romantic relationships so you can submit byline articles relevant to your industry. Appear on local gain access to television as an expert in your industry. Join in professional, community and sector networking events. Develop a customer management program that includes regular contact with customers about subject unrelated to your business as well.
Apply for small business awards plus contests by corporations, professional associations, and government. This recognition can get you attention by your customers along with potential customers that may not know a person exist. Winning an award frequently gets you requests from other mass media who want to publish your story. Additionally, it builds your credibility.
Nurture Your own People
Employees It may be that without your employees you would not have a company. During this economic slowdown, communicate with your own employees. Now more than ever it is important to become transparent, ask for their ideas for improvement. Motivating employees is challenging when they are feeling shaky regarding whether they will keep their jobs. The best motivator is to provide them the opportunity to offer suggestion on how to serve the best interest of everyone in the company on the long-haul. They may be willing to take a pay cut or have ideas about cutting back on expenses you did not think about. Proceed the extra step and provide praise permanently work or ideas that work. They may be your most precious resource. It will always be less costly to keep current employees than searching for qualified employees that you have to teach when the economy improves.
Customers Maintaining your existing customers by providing excellent customer service is good practice anytime. During today’s economy it is critical. It is easier to keep existing customers than to find new ones. Talk to your customers. Understand what they need, how they are doing monetarily, what their expectations are for the future, so you are on your game when the economy improves and your customers start spending more.
Suppliers Supplier loyalty can be valuable when you need extra time to catch up on your account payables. Depending on your company, you may land a new account and need supplies to launch the account until your first month of receivables is due which could be 60 to 90 days out. A good relationship with your supplier could mean your payables receive the same time consideration. Believe creatively when making deals to grow your company with the help of your suppliers. The more growth your business experiences, the more business your supplier could expect.
Focus on the long run
Business Plan Review and modify your business plan. As your business grows and your industry changes it is necessary to maintain your business plan relevant. A well-thought out business plan that includes your cost analysis, new marketing program and employee and customer management programs is critical to a quick plus successful recovery. It can ensure the future viability of your business.
Carrie H Johnson is founder of three businesses including a cleaning service she started with no money plus grew to a multimillion dollar contract-cleaning company that supported 165 workers. During her 17 years since President of this company she obtained several business and community awards.
She is the author of the book “From the Pits to the Palace: One Woman’s Journey to Self-Realization via Entrepreneurship” released in March year and available on Amazon and bbotw. com (Buy Books on the Web). She also is a journalist and it has written for several newspapers including the La Times, Worcester Telegram and Gazette and the Metrowest Daily News.
Ms. Johnson is a small business adviser specializing in business planning, public relations and marketing and advertising planning. She works closely with The Center for Women and Enterprise (CWE), a nonprofit organization whose mission is to empower women to be financially self-sufficient and prosperous through entrepreneurship.