Running a small business right now is very stressful. We live with uncertain economic times and soaring bills, which can mean that keeping your business going is a lot tougher than it might otherwise be.
Do not let things get you too disheartened! Although times are undoubtedly hard right now, if you are serious about keeping your business going and not only surviving but thriving in the current climate, there are several things you can do to see you through, including the following:
#1: Audit Your Working Practices
When times are tough, it is easy to panic, but it is far more productive to look at the big picture. Take a step back, and take some time to audit your company’s working practices.
From how you deal with customers to how you buy the components to make your products. Identify which things are working well and which could be streamlined to save money and increase efficiency. Then, implement as many of these changes as you possibly can.
#2: Catch Up On Outstanding Invoices
If you are having cash flow problems, one thing you can do to hopefully see you through the other side is catch up on unpaid invoices. Getting existing clients to pay up is often easier than generating new income.
So get in touch and remind them their bills are due. If that doesn’t work, you could use invoice financing to unlock the cash you need to see you through.
Yes, you will have to sell those invoices for a little less than their worth, but if it gives you enough money to keep the lights on, it might be worth it anyway.
#3: Audit Your Employees
It may also be helpful to audit your employees. See how many of them you need and whether you are employing too many people for the demand your business currently has.
It is never easy to let people go, but sometimes, it is necessary to cut costs, keep your company afloat, and audit whether you have too many employees.
You should also look to see if all of your employees are providing you with value. If some staff members are constantly calling in sick or not producing good enough results, replacing them could make a surprising difference to your bottom line.
#4: Try a Shorter Working Week
If you need to save money and increase efficiency, moving to a four-day week can often help, especially if you work in a non-customer-facing industry. If, for example, you operate your factory for four days instead of five.
Not only will you save on the costs of heating and lighting the factory and running the machinery, but you will probably find that your staff is more productive at work because they get more of a break than they used to.
#5: Look for investors
Looking for investors can be a great way to bolster your business. If your company is in pretty good shape, then investors, including angel investors, are more likely to be willing to help you through a tough period.
If traditional investors are not an option, crowdfunding or offering community shares can work if you are a popular local business or sell a unique product that consumers want to buy. So, explore all the options available to you in terms of investment.
#6: Look At the Small Stuff
Things like leaving computers on when no one is working at them or paying an accountant to do the books when you could do it yourself might seem like small fry in the scheme of things. But making savings where you can on the small stuff will all add up in the end.
And you could easily find enough savings to get through a tough time. By paying more attention to those little expenses that you would usually not even think twice about.
As you can see, no matter how hard things are, there is always something you can do to give your business a fighting chance of living to see another day. And the more determined you are to do so, the more likely it is that your business will make it through.
Work hard, keep reviewing your business practices, and keep a keener eye on your finances than ever before!. You’ve got this Good luck!