7 Ways for For Small Business Owners to Power Through Tough Times
by Sumona Business Development 19 November 2022
The last couple of years has been some of the worst for many small enterprise owners.
Apart from the everyday challenges of running a company, entrepreneurs struggle with reduced operations, disrupted supply chains, and decreased incomes ever since the pandemic.
And operating in such inflationary times only adds salt to injury!
With the 2022 inflation rates going off the roof, entrepreneurs are also experiencing increased costs, higher borrowing rates, and significant revenue loss. Basically, they are struggling to keep their heads above the water.
Is Your Small Enterprise Suffering Through Tough Times?
If you are an entrepreneur fighting tooth and nail to keep the business running, you are not alone. Luckily there are strategies that you can implement to increase your company’s survival in hard times.
Powerful Tips to Help Your Small Enterprise Survive Hard Times
Below are helpful business tips to keep your company going despite the chaotic entrepreneurial environment.
Let’s delve into the specifics.
Take an in-depth look at your finances
Finances are the backbone of any company, and rigorously examining them is an excellent strategy of how to keep a small business running. Sit down with a financial professional and take a holistic look at your financial reports. Doing so is particularly helpful as it:
- Identifies trends that you can leverage to either create investment opportunities or mitigate to keep your business afloat.
- Monitors cash flows
- Enhances working capital management
- Optimizes company operations
Review your financial plan
One of the best business strategy advice to give struggling entrepreneurs is to review their financial plans. Financial planning for small business owners provides an overview of the financial business situation and a projection of the company’s growth.
Some of the key components included in the plan are sales forecasting, expenses outlay, a statement of the company’s assets and liabilities as well as cash flow projections.
Adjust your marketing strategies
With the ever-changing advertising landscape, entrepreneurs must adjust their marketing strategies to survive hard times.
To do that, small company owners need to audit their current marketing strategies, rediscover their target audience, and go big on social media. They can also create valuable content about their products, and sharing on online platforms.
The end goal should be to create a marketing strategy that’s unique to your company’s needs and adapts to the current environment. And remember to measure the results.
Come up with better customer-retention strategies
Building customer loyalty takes time, which is enough reason for entrepreneurs to do everything it takes to retain them. That means maintaining exceptional product quality as this is crucial for the survival of a business. You can also show your appreciation by offering product discounts and running promotions.
Additionally, value their feedback and leverage marketing strategies to make sure your products remain top of mind.
Boost employee morale
Employees are one of the most valuable assets, and entrepreneurs that are intentional about boosting their morale notice an increase in productivity and revenues.
Start by encouraging better workplace communications, promoting employee work-life balance, supporting employee-led initiatives, and recognizing their efforts.
Have cash reserves
While many company portfolios will feature valuable assets, entrepreneurs need to have access to liquid cash.
It is such tough times that lucrative investment opportunities may appear and having cash at hand allows you to leverage them and stay in business.
Consider setting up a retirement plan
With all the uncertainties, it’s advisable for entrepreneurs to create a retirement financial plan for themselves and their employees. Not only will you have happy employees (which equals increased productivity), but your enterprise will also be eligible for tax credits.
Note that employer contributions are tax-deductible, and any assets incorporated into the plan can grow without tax.
The Bottom Line
Companies are costly and time-consuming and require effort for them to flourish. While a million other things could go wrong, financial problems such as mismanagement of funds, tax issues, revenue-generating problems, and other money troubles are likely to send any enterprise to an early grave.
Is your business going bad?
Interactive Wealth Advisors can assess your enterprise’s model and help you make the most of your finances to ensure profitability. We will provide actionable insights and accurate projections that prevent your company from ceasing operations.
Book an appointment now to talk to one of our advisors.