Small business owners are among the hardest workers in any industry. They take on all the responsibility of running their company and all the risks. When the economy is struggling, many small business owners suffer and end up having to make some hard decisions about their future.
During the pandemic of 2020, millions of businesses were forced to close, and only a fraction of those survived the lockdowns to reopen in 2021. Although hopefully, those hard times are behind us, there is always the risk of financial and economic tough times. Small business owners need to have a plan for when times get tough.
From managing your cash flow to considering short-term loan options from Montanacapital.com, small business owners need to have a plan for when the economy slows down. Let’s take a look at a few ways to keep your business open when times get tough.
When customers are running scarce, there is no point in keeping your store open late or putting up your sign in the early morning hours. When sales start to slow down, it’s time to take a deeper look at your sales trends. Take a look at your analytics and determine when you are bringing in most of your business. Customize your new operating hours to coordinate with when you are most likely to make the most profit.
Reduce Your Staff
If you are going to cut your hours, it’s also a good move to reduce your staff. No small business owner enjoys having to lay off their valued staff, but these tough cuts need to be made to keep the business open in some extreme cases. When sales improve, you can bring your main staff back. Start by reducing hours for employees and taking on some longer shifts for yourself to save money on your payroll expenses.
When sales start to drop, or the economy takes a hit, you may be in need of some extra capital to use for your critical expenses like payroll and vendor bills. Talk to your bank or a private lender about a short-term loan so that you can reduce your debt while things are starting to slow down. You don’t want to wait too long to get a short-term loan and leave your vendors waiting on payment.
Consolidate Your Debts
When business is slow, it can be difficult to scrape together the money to make various debt payments. Once you get behind, it can have a dreadful effect on your professional reputation. A great way to help reduce your debt payments is to talk to your bank about consolidating some of your payments. This will provide you with a single payment, including interest, that is easier to manage when your budget gets tight.
Cut Back On Advertising
Large-scale advertising campaigns can be an expensive but effective tool when the economy is booming. If times are hard, one of the first expenses that business owners look to cut is their advertising costs. There is no need to eliminate your entire marketing campaign, but limit your ads to social media and skip the print and television campaigns until things start to recover.
Running a small business can be both stressful and rewarding. You have invested everything you have to get your business running successfully, but you are always at the mercy of the economy. When times get tough, follow some of these tips to help you keep your business’s doors open.