Small businesses may often find themselves struggling, and there are many situations in which business owners may find themselves weathering a storm and hoping to make it through. While the strength and fortitude of those who run small businesses can be an asset in helping them succeed when times are rough, there are a few strategies that can make survival a little easier.
Reduce Costs Strategically
When things start to go awry, one of the first things most business owners look for is ways to cut down on expenses to improve cash flow. Unlike widespread significant cuts that large corporations often employ, small businesses must be more strategic with their trimming. For example, if you cut your staff down too drastically, you may find your company spread so thin that you are not able to recover. Likewise, if the cuts are too minor, they may not be enough to make a difference. Take time to make a well-researched analysis of how proposed cuts can affect your business in the present and the future.1
Find Low-Cost Marketing Solutions
Even when times are tough, you need to continue to promote your company so that you are able to keep your current customers and try to obtain more, which can help increase your cash flow. The good news is that marketing your business is still possible even with a small budget. Put your company’s focus on types of marketing that may have a low initial cost and a higher return rate. Content marketing and social media marketing are great ways to draw in new business and get your name in front of potential customers without spending a lot upfront.2
Expand Your Network
When times are tough for your business, they are likely hard for other businesses as well. There is strength in numbers, and connecting with other companies or industries may be the answer to some of your problems. You could cross-promote your business with other peers that provide complementary services, recommend each other's businesses, or see if there are other ways for you to help each other out.1
Don't Dwell on Past Mistakes
When things start to go wrong, it is easy to get caught up in past mistakes. Dwelling on the past may make you continue to replay issues and situations that you believe brought you to the current point in your business. This may leave you wondering how the outcome would be if you had changed something. Unfortunately, the past is not able to be changed, and living with regret may prevent you from pushing forward and doing what you need to keep your business afloat.1
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.
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1”The Small Business Hard Times Survival Guide,” Live About https://www.liveabout.com/the-small-business-hard-times-survival-guide-2951407
2A 10-Point Small-Business Survival Plan for Dealing With the Coronavirus, Entrepreneur, https://www.entrepreneur.com/living/a-10-point-small-business-survival-plan-for-dealing-with/347913