All of us uncertain economy is enough to make a small business owner’s hair fall out, bowl more than from a stomach ulcer or scratch up a rash that could cause customers to consider another place for service or product. The good news is that we know the economy will certainly turn around, in time. Your job is to work smarter and keep your business moving forward till then. That means taking a hard look into the business of your business.
As small business owners we are good at what we do and make. Problems arise when we pay too much attention to our product or service instead of enough to managing the business by itself. Granted that is the part that usually mirrors a dreaded “ugh, ” but it is also the part that can mean 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 company
Cash in or Cash Out I am sure you might have heard this a thousand times, but it still needs saying. “Cash is definitely king. ” A business is more very likely to survive in a good or bad economy with good cash flow than with earnings. One does not necessarily mean the other. Small business owners usually have problems with cash flow no matter the economy. To improve cash flow do a cost analysis of your business. Look at areas where you can save money such as bank plus credit card charges; negotiate with creditors for longer payment arrangements. Barter with regard to services or products with suppliers. If you provide credit to your customers, cut it down or out and be even more aggressive with collections. Consider outsourcing services instead of hiring another worker. There are many freelancers that are experts within specific areas such as accounting plus bookkeeping, website design and operations and marketing and public relations that can cost less compared to an employee, benefits included. Be creative in reducing the cost of your daily operations without sacrificing the quality of your service or product.
If you do large jobs, ask for the payment plan that includes a deposit. If you carry out large contracts such as janitorial solutions for major corporations, invoice early and ask for early payment or offer your customers a discount when they pay the invoice within a particular time frame. In a poor economy, huge corporations are looking for ways to save money too.
If you need help with your cost analysis or cash flow projections, ask for this. Worcester has many free and cheap resources to help you develop your survival tactics.
While cutting costs is most important, cutting back on marketing, advertising 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 may forget about you when the good times resurface. And they will resurface.
Develop a no cost marketing and advertising plan that includes building media relationships so you can submit byline articles relevant to your industry. Appear on local accessibility television as an expert in your field. Join in professional, community and sector networking events. Develop a customer administration program that includes regular contact with clients about subject unrelated to your company as well.
Apply for small business awards and contests by corporations, professional organizations, and government. Here is more info in regards to 소액결제현금화 visit our own web page.
This recognition can get you attention by your customers and also potential customers that may not know you exist. Winning an award frequently gets you requests from other media who want to publish your story. It also builds your credibility.
Nurture Your own People
Employees It may be that with no your employees you would not have a business. During this economic slowdown, communicate with your employees. Now more than ever it is important to become transparent, ask for their ideas with regard to improvement. Motivating employees is hard 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 over the long-haul. They may be willing to take a pay cut or have ideas about reducing expenses you did not think about. Go the extra step and provide praise for good work or ideas that work. They may be your most precious resource. It will always be less costly to keep current employees compared to 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 discover new ones. Talk to your customers. Find out what they need, how they are doing economically, what their expectations are for future years, so you are on your game when the economy improves and your customers start investing more.
Suppliers Supplier loyalty can be valuable when you need extra time to cope 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 – 90 days out. A good relationship with your supplier could mean your payables receive the same time consideration. Think creatively when making deals to grow your business with the help of your suppliers. The more development your business experiences, the more business your own supplier could expect.
Focus on the near future
Business Plan Review and revise your business plan. As your business increases and your industry changes it is necessary to keep 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 and successful recovery. It can ensure the future viability of your business.
Carrie They would Johnson is founder of three businesses including a cleaning support she started with no money and grew to a multimillion dollar contract-cleaning company that supported 165 workers. During her 17 years because 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 by means of Entrepreneurship” released in March year and available on Amazon and bbotw. com (Buy Books on the Web). She also is a journalist and 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 planning. She works closely with The Center for Women and Enterprise (CWE), a nonprofit organization whose mission is to empower women to be economically self-sufficient and prosperous through entrepreneurship.