With the recession currently gripping the country, many small business owners are very scared at what their future may bring. Rather than taking proactive action, however, many are taking the opposite approach and are not reacting to the situation at hand.
Fortunately, there are a number of things that you can be doing to move your small business in the direction you want to go, despite the fact we're in a recession.
Let's look at what you need to know.
Go After Money Owed
If you currently have customers who owe you money, now is the time to chase these payments. Keep close tabs on your accounts receivables and payables and be sure things are straightening up as they should.
Even if you have been flexible with payments in the past, a recession is probably not the best time to be flexible with customers who owe you money. A polite, but firm reminder to pay up should do the trick.
Talk With Suppliers
Keep in mind that if you're suffering in your business revenue, chances are your suppliers are as well. Use this to your advantage.
Talk with your suppliers and see if they can't give you a discount on supplies to help keep your business moving. They will often offer discounts if they're currently worried about revenue and losing custom.
And if your current supplier won't discount, shop around. In these times, the environment will be more competitive.
Don't Be Afraid Of Extra Finance
The next quick tip is to not be scared of securing additional financing if you need it. Many people are worried about taking on more debt, but at times, this is precisely what's needed to move your business forward.
Be sure to choose a responsible lender and make a wise decision about the funding you seek, but don't be afraid to do so. Sometimes fear is what keeps you from seeing growth.
Consider Employee Layoffs
As unfortunate as it may be, you might also want to consider downsizing in your staff numbers. If you can assign one person the duties of another and get some employees additional training to make them more proficient, this can help bring down your operating costs.
Often, employees aren't making full use of their time at work, so increasing productivity is going to have a high return for you.
Get Wise With Your Marketing Strategies
Finally, take a look at your marketing budget, what you are currently doing, and what's paying the best in terms of bringing in more revenue.
Consider slashing the marketing techniques that just aren't delivering as best as possible and trying new techniques that may cost less.
Marketing is one area where your budget can get eaten quickly and if it's not paying the greatest of dividends in terms of bringing in new customers, you will want to re-evaluate things.
So there you have some of the key tips to help you get through the recession. Use these and you should be able to survive and continue to earn more business moving forward.