Though not guaranteed, the US economy appears to be on the brink of a recession. During a recession, consumers often postpone payments and purchases. This can lead to a cascade of delays that slow down all aspects of a small business operation. Also a recession typically limits the availability of credit. Consequently, small business owners must plan for these circumstances and develop new strategies accordingly. You’ll need a win-win mentality, steely resilience, and some survival tactics to help you survive the rough patch.
While it may seem that small businesses are doomed on the brink of economic downturn or recession, they actually have many options for survival and even prosperity. Here are some Small business survival tips to help you keep your business afloat during tough economic times:
- Manage your cash flow. Examine your cash flow analysis and look for steps to strengthen your financial position.
- Meet with your local banker. Reinforce your relationship and inquire as to any
strategies they might recommend.
- Contact your Trusted Advisor to explore all strategies, that could be your CFO or Accountant. If you do not have an advisor or have questions, reach out to TSAT today!
- Contact any and all vendors and creditors and either establish a line of trade credit
or explore extending the terms.
- Examine and reduce where possible, your accounts payable.
- Examine and manage your accounts receivable. Try and reduce the average
number of days (age) of your receivables.
- Examine and develop a number of guerilla marketing strategies designed to
- Develop strategic alliances with other businesses to expand market penetration or
explore new markets domestically or internationally.
- Either reinforce or create a Board of Advisors. These individuals can be a
valuable source of information and advice.
- Contact SCORE (www.SCORE.ORG), for advice and visit the Counseling and Training area, http://www.sba.gov/services/training/index.html. Also get the information you need at: www.sba.gov/ed.
- Contact local universities or colleges. They often have student consulting teams
available to work with small business entrepreneurs to solve problems facing the
Protecting cash flow is the number one recession-proofing tip. It’s important to have stable cash flow to survive and grow your business. If you fail to do this, you could find yourself facing an uncontrollable shortage of funds and forced to close your doors. In order to secure a stable cash flow, small business owners should do a cash flow audit. They should also cut down on unnecessary expenses or seek professional financial help.
You can always expand your business or attract new customers from competitors, but you can’t cut back on marketing. You should go all out, and make sure that you’re providing something unique and different from your competition. To do this, you should study your competition, see how they advertise, and ask consumers about their experiences with various businesses.
At TSAT, we know that a great businesses need to operate at high levels of service, accuracy, reliability, and throughput. We also know that the only way to ensure these things are achieved is to develop a comprehensive set of accounting and finance policies and procedures and to regularly train all personnel involved in the management and control of the company’s software. Only by taking steps toward accounting, quality assurance, and finances can a small business accounting department expand its business and improve its profit margins. It takes a little work to make sure that every aspect of small business accounting is running at full capacity, and we are here to help!
Here at TSAT, we are not simply tax preparers. We work with you to provide a 360-degree strategic financial advice, including small business operations and investment guidance. We will help you stay ahead of the curve when it small business or personal investments!
If you are a gig worker or small business owner looking to grow your business, TSAT’s AMAZING team considers much more than just your taxes!
TSAT’s Services will let you focus on your business’s core competencies! Whether you have a small business or you need help personally, TSAT can give you HOPE! Call us today!
Phone: (417) 208-2858
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