Is your business facing some tough times? It is easy to panic, feel alone, and overstress. But you should stop that right away. Tough times do not mean that your business is failing, in fact most businesses do face tough times no matter their size. Fortunately, there is light at the end of the tunnel.
Take a look at some of the largest companies in the world and you will see hundreds of times across their lifespan where they were doing it really tough, but with some determination they were able to turn it around. Some examples like Apple, in the mid 90’s had lost over 1 billion dollars, they held on did something different and are now a $1 trillion company.
While Apple may be a much bigger company than your own, the lesson is still important, don’t lose your head, revise, and push through. Here are 4 tips that can help you do just that.
1. Focus On Your Current Customers
Your current customers are the lifeblood of your business. They often spend the most and are more likely to make recommendations to friends and family. While it is good to look for more customers (that is key to growth) you should not neglect your existing customer base.
This existing customer base is the most efficient group to make sales to. So, focus some of your resources to review their current needs and see how successfully you are at meeting them. This way you can shift your business to continue meeting their current needs to maintain that ongoing relationship.
2. Look To Improve Your Cashflow
Now is a great time to revise your cashflow. Look at ways that you can alter your current processes and improve them, helping you through this tough time and potentially propelling you to new growth in the future. Often businesses find many things they can change that will help their cashflow, talking to a professional bookkeeping service can help you see changes that you may not have noticed before.
Are you able to charge your clients a deposit or ask for upfront payments? Maybe you could implement an automated reminder system to encourage clients to pay in a timelier manner. There are many different ways you can make cuts or revisions to improve your cashflow.
If you can avoid it try not to eliminate staff. They will just need to be rehired again when things turn around costing you money. Instead look to find other ways to save money.
Account for and scrutinise every dollar your business spends. Talk to creditors and find out if you can restructure your debts. Try to free up money where you can without setting yourself up for failure when you do get through this period.
3. Revise Your Marketing Plan
Your marketing is what draws customers in, if your business is in some tough times it is a good idea to revise your marketing plan. Consider some fresh marketing ideas that will draw attention back to your business, bringing in customers. Are there any channels you haven’t tried promoting on before? Or are there any products or services that you haven’t tried marketing yet?
Revise your current strategies. Determine how successful they have been and replace any unsuccessful attempts with something new. There is no point wasting your budget on something that isn’t providing a good return.
4. Reach Out
There are many business owners from any industry who have faced tough times and have gotten through. They are generally more than willing to talk about it and help other business owners get through their own tough time. Seek these business owners out, see what they did that worked and what did not work for them. Often their answers could help you.
Reach out to your bookkeeper too. They will have experience helping businesses through difficult times, knowing how to improve cash flow without setting the business up for failure. If you don’t have a bookkeeper, it may be a good idea to find a good bookkeeping service.
More than likely any business will face tough times at least once. It is best to prepare for it during times of growth, build connections and get a good bookkeeper. When the time does come face it front on, take action and ask for advice or help. Talk to your bookkeeper for help in keeping your cash flowing.
If you do not have a bookkeeper give Link Strategies a call. We can help your business survive those tough times and flourish when you are out the other side.