If your business hasn’t been through hard times yet, that’s great – but it’s likely to happen at some point. As much as we dream of being brilliant enough that we’ll never face a slow patch, plenty of things beyond our control can hurt a business. Here are four tips for getting through the difficult periods so you can look forward to many more years of ownership.
Focus on your existing customers
When times are tough, many owners turn their focus to bringing in new business and forget their existing customers – yet those are the most efficient people to sell to. Keep marketing to new customers, but give extra focus to the ones you already have to keep them loyal. Find out their current needs, how well you’re meeting them, and what you can do to maintain the relationship. Communicate often and always provide exceptional service.
Reach out to others
Chances are you aren’t the first in your industry to face tough times. Talk to people who have been through similar situations to learn how they navigated the challenges – what worked, what didn’t, and what they learned. Some of their answers could apply directly to your business, or at least inspire a solution.
Examine your marketing plan
Your marketing plan brings in new customers, so now is the time to consider fresh ideas. Is there an area of your business you haven’t promoted that could bring in clients? A new channel you haven’t tried? Review your previous efforts to see how successful they were – if they weren’t, stop spending time and money on them and put your energy into something new.
Improve your cash flow
Analyse your financial health for ways to improve cash flow. Can you charge a deposit or encourage payment up front? Are there products or services that bring in revenue faster than others? It can be tempting to cut staff, but when things pick up you’ll need to hire and train again – so look for small savings that won’t hurt you later, like cutting overtime. Account for every dollar, don’t hide from creditors (talk to them about restructuring debt or extending terms), and free up as much money as you can without setting yourself up to fail when things turn around.
Final thoughts
Your business will probably face tough times at least once. Take action to get through it rather than crossing your fingers and hoping it passes – the steps you take during the hard periods can also set you up for greater success in the years that follow.