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4 Tips for Getting Your Business Through Tough Times - 31st March 2020
If you're a small business owner whose company hasn't gone through hard times, that's great but it's likely to happen at some point. As much as we dream about being brilliant enough at business that we'll never face slow times, there are many things beyond our control that can negatively affect our business.
It's highly likely that the Coronavirus and it's resulting impacts, could put some significant pressure on your business.
Here are four tips for getting your business through difficult periods so you can look forward years of business ownership.
Focus on your existing customers
When companies go through tough times, many owners
turn their focus to bringing in new business. The downside is that existing
customers are often forgotten, but those are the most efficient people to make
sales to. You don't need to stop marketing yourself to new customers, but make
sure you give extra focus to the customers you already have, to ensure they
remain loyal. Find out what their current needs are, how successful you are at
meeting them, and what you can do to maintain an ongoing relationship.
Communicate with them, and always provide exceptional customer service.
Reach out to others
Chances are, you aren't the first person in your
industry to experience tough times. Talk to other people who have been in
similar situations to learn how they navigated those challenges. Ask them what
did and didn't work for them, and what they learned from the experience.
Some -if not all - of their answers could be applicable to your business, or could
at least inspire a solution.
Examine your marketing plan
Your marketing plan brings in new customers. Now is
the time to consider fresh marketing ideas to bring in new revenue. Is there an
area of your business you haven't promoted before but could bring in clients?
Is there a new way to market yourself you haven't tried?
Examine previous marketing efforts to determine how
successful they were. If they weren't successful, stop wasting your valuable
time and money on them. Use your efforts on something new.
Improve your cash flow
Assess your company's financial health to see if
there are ways to improve cash flow. Can you charge clients a deposit or
encourage payment up front to increase cash flow? Are there products you sell
or services you provide that bring in revenue more quickly than others? Are there
ways to save money that won't hurt your business in the long run?
It can be tempting to eliminate staff, but when
things are good you'll just need to hire employees again. Doing so costs time
and money. See if you can find small ways to save money that won't negatively
affect your business when it starts booming. Cutting overtime, for example, can
save you money without losing staff.
Make sure you can account for every dollar your
business spends. Don't hide from creditors, communicate with them to find out
if you can restructure your debt or extend your terms. Free up as much money as
you can without setting yourself up for failure when things turn around.
Final thoughts
Chances are your business will go through tough times at least once. It's
important you take action to help get you through it, rather than crossing your
fingers and hoping the difficulties pass.
The steps you take during these challenging periods
will help you, but they can also help set you up for increased success in later
years.
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