Covid-19 and the long Ukraine War and sanctions by the West on Russia has completely changed the global economic scenario. Oil is fast getting scarce everywhere leading to increasing prices of all commodities. Problems are not only being faced by people, but also be manufacturers and small companies alike. With the economy changing at a fast pace, it is time for small entrepreneurs to come up with a solid business plan to stay afloat.
Top 10 tips to keep your Small Business Afloat
The truth is majority of the small businesses are not strong enough to tide and survive the present global economic crisis. Getting to know some valuable tips can help survive the crisis.
1. Maintain eagle eye on business cash flow:
Have strong control over your cash flow. For surviving this crisis, keep a hawk eye on the cash flow. It should stay positive. Work closely with your customers and ensure credit obligation is met. Debtors should be prompted to make timely payment. Also delay payments tactically to your creditors.
2. Focus to develop your business and exit from other investments:
Don’t hold onto all the stocks you own. Rather, sell most of them. Use the availed cash wisely to tighten up your personal and Business Finances. Recessions follow with a steep drop in stock value and price.
3. Increase budget/expenses concerning advertising and marketing:
Most managers tend to reduce marketing budget during recession. Instead, spend more! Show your customers you are with them even during this bad time.
4. Reduce unnecessary expenses:
Business expenditures should be managed very carefully. You need to be cautious when spending on other things like bonuses, parties, incentives, vacations. These might not have direct impact upon your business growth.
5. Strategic plan is to focus more on business survival:
You should implement digital marketing efforts to boost your business reach. Be innovative and creative with your products and services.
6. Miscellaneous expenses should be based on relevant sales:
It is a vital strategy and should be adopted for business survival. This technique is also referred to as ‘bootstrapping’. Expenses should be done from generated sales during that time period and not from the reserve.
7. Inspire employees by using fear of recession:
Whenever your business experiences difficulties, you can implement this business plan to survive. Companies across the globe have been laying off workers in thousands. Do take drastic measures while being committed to your employees’ welfare and social security.
8. Care for your existing customers:
It is without doubt that customers are the greatest asset for any organization. To improve Business Finances, cater to their needs. Try to retain existing customers. Ensure they do not switch loyalty to your competitors.
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9. Lead by examples, be committed:
Will increasing productivity and cutting back on employee salaries keep afloat your business? If yes, you need to lead by example. Start with yourself first. Accept longer work hours and pay cuts. This way, no one will complain. Find out what your competitors are doing and take the good points to implement them in your business. Do adopt digital marketing efforts to enhance your business prospects and ensure your customers remember your brand.
10. Customer service:
Customers do expect exceptional service from all businesses at all times. Only then will then come back for more or simply switch on to another company who provides better service. Hence, to derive repeated sales, focus on your customer.
Thus, following the above strategies sincerely will help keep your Small Business Afloat during these bad times. You need to be proactive and find out what works out well for your business.