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7 Ways to Make Your Business Thrive in Hard Economic Times

 

Decline in consumer confidence and falling sales threatens all businesses, but small businesses are particularly vulnerable, as they often do not have the reserves to help them turbulent times. Does your company, for example, have a plan for what you do when / if the next big financial crisis soon hits?

So how can you secure your business financially? Implementing these methods will help ensure the survival of your small business and even allow it to thrive in tough economic times.

1. Protect your cash flow / cash flow.

1. Protect your cash flow / cash flow.

Cash flows are the lifeblood of your business; To keep your small business healthy, money must continue to enter. Now, no matter how difficult times there are, having cash flow in your business is crucial to this.

As long as your business exists, you will have expenses. But the greater the setbacks, the harder it can be to continue the cash flow and thereby your company’s income and survival!

 

2. Review your inventory management practices.

2. Review your inventory management practices.

See what can be done to reduce storage costs without sacrificing the quality of goods or disturbing customers. Do you order for many specific items? Can a product be purchased somewhere else for a better price? Is there a drop shipping option that will work for you, eliminating freight and storage costs?

Just because you’ve always ordered something from a particular supplier or done things in a certain way doesn’t mean you have to keep them that way – especially when the other ways can save you money.

 

3. Focus on your core competencies.

3. Focus on your core competencies.

I have seen many articles on diversification as a strategy for the success of small businesses. (I’ve even written some of these articles myself!) But too often, small business owners simplify the concept of “diversification” to “different”.

Just adding other products or services to your offers is not diversification.

At best, it’s a waste of time and money.

Worse, it can damage your core business by taking your time and money away from what you do best and / or destroying your brand and reputation.

Delete the extras and focus on what you do best, which is most profitable for your business.

 

4. Develop and implement strategies to get your competitors’ customers.

4. Develop and implement strategies to get your competitors

If your small business wants to thrive in tough times, you must continue to expand your customer / customer base – and that means drawing customers from the competition.

How can you do this? By offering something more or something other than the competition does. Examine your competition and see what you can offer to entice their customers to become your customers.

Providing better customer service is often spied on as one of the easiest ways to expand the competition.

 

5. Make the most of the customers / customers you have.

We have all heard the old saying that a bird in the hand is better than 10 on the roof. The bird in hand is your customer and he or she is an opportunity to give more sales without incurring the cost of finding a new customer. Obtaining new customers is more expensive than servicing current customers.
He or she can be a loyal customer, giving you many more opportunities.

 

6. Continue marketing your business.

Get time for the family – even in financially crowded times – without working yourself half dead!

In lean times, many small businesses make the mistake of cutting their marketing budget into the bone or even eliminating it altogether. But lean times are exactly the times your small business needs most marketing.

Consumers are restless and seek to make changes to their purchasing decisions. You need to help them find your products and services and choose them rather than others by getting your name out. So don’t stop marketing. In fact, if possible, increase your marketing efforts.

Getting on the social media is a very economical way to expand your marketing.

 

7. Keep your personal finances and credit in good shape.

7. Keep your personal finances and credit in good shape.

Hard times make it more difficult to borrow and small businesses are often among the first to disappear. With good personal credit you will have a much better chance of borrowing the money needed to keep your business unattended if you need it.

If you are retired, keep track of your personal credit rating and your business and do what is necessary to keep your credit ratings in good shape.

There is absolutely nothing that will make your small business one hundred percent financially secure. But the implementation of the above-mentioned recession-proof proofing practices will help ensure that your small business survives hard times and may even make money from them.

 

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