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Navigating the slump: When the going gets tough at your small business

small business

Every small business owner knows that there will be bumps and slumps along the way to success. Even well-established companies hit rocky patches once in a while, but for the smaller businesses, hard times are often much more difficult to overcome.

If you’re business has fallen upon hard times, here are a few strategies you can employ to pull yourself back up.

When you’re out of ideas

Have you tried every trick in the book to generate leads, increase sales or reach a wider customer base? If you’re simply out of ideas, it may be time to reach out to people lower on the totem poll.

As the decision-maker, you likely have a good grasp on the overall layout of your company, but you might not be aware of smaller details that could be causing problems. Asking employees to give honest feedback will help you identify areas for improvement that you may not have considered.

Bite the bullet and spend a little

When your company is experiencing hardship, the last thing you want to think about is shelling out more money. But it’s an unfortunate fact of business that sometimes you have to spend money to make money.

If the budget is really tight, you may need to organise small business loans to help make an investment that will bring you up out of the rut you’re in.

Make the rounds

It’s always difficult for small businesses to remain on their customers’ radar – they simply don’t have the visibility that established companies enjoy. For this reason, you need to be regularly reaching out to current and past clients through various platforms, including email marketing and social media.

This takes work, and you may need to hire a new worker to take on the task. But doing so will make it much more likely that your customers will come back for more. You could even consider Social Media to get your business in front of your customers, and perhaps new ones!

Managing your cash flow

In order to figure out where you may be able to reduce spending, you need to have a good grip on your cash flow. This is often easier said than done, particularly if you don’t have a background in finance.

Fortunately, there are individuals out there who are able to monitor such things, and bringing one of them on to your team could help you manage your funds well into the future. This person will be able to look at your income and spending and identify places where you may be shelling out  money when you don’t need to.

Wrangling your business loans

Business loans are a necessity for many new companies, but managers need to be certain they’re getting the most bang for their buck. If you rushed into your initial business loan, it may be time to think about switching to something with better interest rates or a more manageable payback scheme.

If you’re happy with your loans, it still doesn’t hurt to meet with a loan manager or financial advisor every once in a while to make sure they’re still providing you with the best service. There may be promotions or changes in interest rates on the horizon that could have a big impact on your business expenditures.

 

This blog post is for general information purposes only and is not intended as financial or professional advice. It has not been prepared with reference to the financial circumstances of any particular person or business and should not be relied on as such. You should seek your own independent financial, legal and taxation advice before making any decision about any action in relation to the material in this article.

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