Preparing for the Inevitable

How to survive economic hardship in your business

At some point in your business life, you will incur economic hardship. The very nature of business is a series of ebbs and flows or peaks and valleys. When the peaks come, it is lovely. Customers are aplenty, and revenue is flowing from all spouts. However, but what about the reverse, the valleys.

Valleys are those times when your revenue seems so slow that an ant’s homebuilding process is faster than your business’s growth. You might be falling out of favor with your customers. Competitors seem to come from all angles to steal a piece of your market share. It is at this point that you, as an entrepreneur, should use the tools in your arsenal to overcome these trials and tribulations.

There are many ways to overcome downturns or economic hardships within your business. Entrepreneurs may choose to focus on ways to increase their top line, bottom line, or other enhancements. Like the message within the articles in the series Entrepreneurs Can Win with Diversity, where I challenge entrepreneurs to brainstorm and implement ways to initiate change, business owners must also ruminate on ways to recover from economic decreases in their businesses. Some areas of your business to improve during economic hardship might be:

• Increase Revenue — Identify ways to generate more money from customers or clients.
• Decrease Expenses — Discover reductions in costs incurred by the company.
• Find Efficiencies — A review of business processes to find efficiencies, therefore increasing profit or reducing cost.
• Create Strategic Alliances — Identify fellow business connections to enhance your business and theirs for a mutual benefit.

These are four areas in which to focus. Four additional strategies plus actionable templates to start using them are included in the toolkit. Regardless of which method or combination of methods you use, the main point is to act. The only way your business will survive is with intentional and strategic direction from its leader, you.

So even though your business might be struggling, dig deep within yourself, motivate those on your team to work together to not only save your business from economic difficulties but to create a new and higher peak on which you can thrive.

Adapted from 8 Proven Strategies to Enhance Your Small Business During A Down Economy by the DFI Team.