. 3 min read
Keeping a small business afloat in difficult economic times is challenging. Unfortunately, there is no set playbook to follow to ride out the storm and right the ship. Every small business is different, and each carries its own risks and rewards. It includes tips on strategic planning, effective cost management, staff management, taking action, saving time and money, and maintaining quality. Learn about strategic planning, effective cost management, staff management, taking action, saving time and money, and maintaining quality to keep your business afloat and thriving.
1. Look at the Big Picture
People have a tendency to attack the most obvious immediate problems with vigor and without hesitation. That’s understandable and might make good business sense in some situations. However, it is also advisable to step back and look at the big picture to see what is still working and what might need changing. It’s an opportunity to better comprehend the size and scope of existing problems and further understand your company’s business model determining how its strengths and weaknesses come into play.
2. Take an Inventory of the Staff
Payroll is often one of the top costs a small business owner has, so making sure the money is well spent makes sense. This may involve a thorough review of the staff both when a problem arises, as well as during the normal course of business to make sure the right people are on-board and doing their jobs effectively. Both small business owners and large corporations tend to be “penny wise and pound foolish” when they hire the least expensive workers. Sometimes, the productivity of those workers may be suspect.
3. Finally focus on your to-do list
Whether you’re still stuck at home or not, it’s important to take a look at this rare moment in history and try to find some positives. If business has slowed down lately, one positive could be more time to get things done. Everyone running their own business has an enormous to-do list, and now’s the time to tackle it, both in your personal and professional life.
4. Don't make things worse by doing nothing and deal with facts not fiction
Whenever you see a disaster looming, the single most important thing to do is take action. Sometimes we can be a little like a deer in the headlights, not quite believing what is going on, frozen on the spot. The problem is that if we don't leap into action, things will always get worse and they will get worse quickly. Most of the things we worry about never actually happen, so don't let your imagination get ahead of the reality of the situation.
5. Save Time & Money
13% of small businesses are unable to manage their time properly found in a research report. Wasting time on trivial things prevent businessmen from conceiving a great idea for their business and doing other important tasks. Therefore, you must start saving your time and money as much as you can. Let’s take an example:
Your accountant spends too much time by going to every employee who worked on a particular project for project expense details, putting that on paper, making a draft bill, checking it properly, and when finding it right, sending it to the customer/client.
However, if you have invoicing software for small businesses, then you can get your whole invoicing process customized as per your business requirements and convenience.
6. Maintain Quality
Don’t let your quality of service drop. It is easy for your mood and feelings to manifest itself in poor staff performance and overall quality of service. Try to keep staff motivated and don’t stop making improvements to your business. It could also be an ideal time to start introducing new ideas. If you run a fleet, GPS tracking software will allow you to monitor driver performance and the optimize the routes they are taking. This will reduce costs and improve customer service.
In conclusion, keeping a small business afloat during difficult economic times requires a combination of strategic planning, effective cost management, and continuous quality improvement. Small business owners should focus on the big picture to identify what is still working and what needs to change. They should also take a closer look at their staff and ensure that they are productive and effective. It is important to take action and deal with facts, not fiction, to avoid making things worse. By implementing these simple strategies, small business owners can weather the storm and emerge stronger and more resilient.