Since the economy regularly ebbs and flows, there are bound to be times where your business is more or less successful than you’re ready for. Sadly, right now is likely to be one of those times where you might find your business struggling. But with the right plan and adjustments, you can reduce the chances of your business going under even when things aren’t going as well as you’d like.
To show you how this can be done, here are three tips for adjusting your business finances during slow economic times.
Don’t Neglect The Basics
When things get hard, one of the best things you can do for your business is to get back to the basics, and this includes your finances.
According to NextAvenue.org, without doing the basics of your financial functions well, you can’t hope for your business to be able to make it through hard financial times. Some of the basics that you should go back to and ensure that you’re not neglecting include things like correct record keeping, budgeting, monitoring your cash flow, and managing your credit. If you don’t currently have a handle on these things with your new financial variables in place, it’s time to sit down and look at these financial basics before you move forward at all.
Talk To Your Creditors
For businesses that aren’t able to have the cash flow they need during slower financial times, a lot of your functionality is going to be handled through credit. However, you’re going to have to pay off the debt that you’re building up at one point or another.
To help you with this, the U.S. Small Business Administration recommends that you speak to your creditors well before any of your accounts get past due. By having a frank conversation about what is happening for your business at this time and what you’re able or not able to pay on your debts, you may be able to work something out that will help you keep your business going even when funds are low.
Focus More On Current Customers And Clients
When your business is in a downturn, your first instinct might be to try to look for new customers or clients to try to bring in more business. However, according to Susan Ward, a contributor to The Balance Small Business, your attention should really be focused on your current customers or clients and getting them to stick with your business.
It’s much more expensive to go after new markets and find new customers and clients than to try to up-sale the ones you already have, so try to focus your efforts on this area in order to save some money.
If your business is currently struggling, consider using the tips mentioned above to help your organization during these troubling economic times.