Keeping a small businesses afloat in difficult economic times is challenging. Unfortunately, there is no set playbook to follow to ride out the storm. Every small business is different, and each carries its own risks and rewards.
These differences make copying another company’s turnaround strategy to the letter unrealistic. However, there are some general strategies business owners can follow to steady the ship and boost the chances of survival.
1. Ensure Access to Cash
Small business owners should take steps to ensure that the company has access to cash, particularly in periods of crisis. Visiting a bank loan officer and understanding what’s required to obtain a loan is a good first step, as is opening a line of credit in advance to fund possible short-term cash-flow problems. Establishing a good relationship with a banker is always useful for a small business .
2. Start Sweating the Small Stuff
Although it is important to keep an eye on the big picture, a small business owner should not overlook smaller things that may have an adverse impact on the business. A large tree obstructing the public’s view of the business or the company’s signage, inadequate parking, lack of road/traffic access, and ineffective advertising are examples of small problems that can put a big dent in a business’ bottom line.
3.Look at the Big Picture
People have a tendency to attack the most obvious immediate problems with vigor and without hesitation. That’s understandable and might make good business sense in some situations. However, it is also advisable to step back and look at the big picture to see what is still working and what might need changing. It’s an opportunity to better comprehend the size and scope of existing problems as well as further understand your company’s business model—and determine how its strengths and weaknesses come into play.