In the business world, it is not unusual to hit a rough patch somewhere along the way. Whether it is a problem with implementing new technologies or an issue with successfully scaling your business — something is bound to happen sooner or later.
How Can You Keep Your Business Afloat in a Crisis?
Nevertheless, you should not wring your hands in despair when a crisis finally comes for you and your company. On the contrary, you should take meaningful steps to get out of this situation as quickly as possible.
If you are looking for actionable tips on keeping your business afloat during challenging times, you came to the right place. Here, we list some of the best practices to leave the recession largely unscathed.
They range from prioritizing business interests, ensuring access to cash, and openly communicating with your employees to finding new business allies and adequately changing your price offers. Let’s get started.
Prioritize Business Interests
It is not uncommon to see companies trying to keep their staff and customers happy at all costs, even when they end up losing money as a result.
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However, one of the most important things you need to do as a business owner is to put your company’s interests above everything else. You need to invest in your business and make sure that it is able to operate as smoothly as possible.
If you fail to do so, you may soon find yourself in a dire financial situation and unable to pay wages and bills on time. This will only result in your employees leaving you and your clients going elsewhere.
Business Continuity & Risk Management
No matter how hard you try to avoid a crisis, one will come sooner or later. As a business leader, you need to ensure that your company is always prepared to deal with the aftermath of a crisis.
You should have a plan in place to prevent or mitigate potential risks and establish a backup plan in case things do not go as you planned.
If it’s something that you think would benefit your business, you might want to check C2 business continuity software or a similar tool that would make the process easier.
Ensure Access to Cash Flow
The next thing you should do is ensure that you have continuous access to cash flow. This will enable you to pay your employees and creditors on time and avoid bankruptcy.
If you can afford this, you should consider borrowing some money from private lenders. These lenders are more often than not willing to provide short-term loans with flexible repayment terms and rates that are much lower than those of banks.
Plus, they are also much more likely to give you a loan if you can offer them some collateral that can be sold in case of default.
Communicate Openly With Your Employees
Another critical aspect of keeping your business afloat during a crisis is to communicate openly with your staff. This is especially relevant if you are planning to lay off people or cut costs in some other way.
If possible, tell your employees about the challenges that your company is facing and how you are going to overcome them.
This way, you will not only gain their trust and respect, but they will also be more likely to stay on board and help you through the tough times.
Also, do not forget to praise your employees for their hard work and commitment even when things are looking grim.
Look for New Business Allies
Now that you have ensured that your company has access to cash flow, it is time to look for new business opportunities to help you survive the crisis.
One of the best ways to do so is by finding new business allies who are ready to join forces with your company and help it grow. They may not be able to offer significant funding or assets, but they might have other things that are just as good.
For example, they can help you expand your network, increase your sales channels, or even bring their own clients on board. The possibilities are endless here. Simply put, you never know what kind of help you could get until you start asking people for it.
Change Your Price Offers
Finally, if all other options fail, you should consider changing your company’s prices for its products or services. It is common for companies to increase prices during difficult times because they believe this will help them maintain cash flow and make up for any losses due to decreased sales volume.
If this works for you, go ahead and try it out. Otherwise, consider cutting prices instead. This will make your products or services more affordable, which could lead to increased sales volume and improved cash flow in the long run.
When it comes to keeping your business afloat, there is no one-size-fits-all solution. You need to invest time and resources to analyze your business activities and find the most efficient way to keep them afloat.
If you follow the tips outlined above, you have a great chance of surviving the rough times. The key to success here is to avoid panicking and stick to the plan.
Just remember to prioritize business interests, ensure access to cash flow, communicate openly with employees, look for new business allies, and then watch your business sail through the crisis.
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