Strategies to Survive During Slow Business Times
Covid-19 has changed the course of small businesses across America and the world, almost overnight. For many businesses, this has diminished their sales sometimes to the point where they have to shut down temporarily or permanently. Minimizing the impact of Covid-19 means strategizing now.
Strategies to Survive During Slow Business Times
Cut Spending
One of the first steps a business owner should take when business is slow is to evaluate their expenditures and minimize or delay any that aren’t necessary. For example, evaluate your marketing and advertising spending. When evaluating, really consider the ROI - return on investment, it should be helping your bottom line and not hurting it. Lastly, project the next three to six months. Your expenditures should match up with your accounts receivable.
Collect What You’re Owed
If you have customers that haven’t paid their invoices, this is the time to be on top of it. Make sure you’re giving them the time that is standard in your industry to pay the invoice, but be diligent when it comes to overdue invoices and promote discounts to encourage efficient payment. Once a service or product is delivered, send the invoice as soon as possible. Be efficient!
Talk to Your Bank and Suppliers
Due to the lack of business, you may not be able to pay your bills. Reach out to your suppliers to find out if there’s flexibility with payments, such as an extension or payment plan. Talk to your bank, either obtain credit lines if you can or if you already have them, use them. During slow business times, you need to make sure you have cash on your balance sheet. Just make sure you have a plan to make the money back.
Switch up Your Marketing
If your business is slow because of Covid-19, it’s likely you’ve had to completely change your marketing strategy. Either way, when business is slow, marketing matters most. Focus marketing on social media and other digital platforms that can reach your customers. This might require increasing your budget. Creating educational content and online resources for your customers will show that you care about your customers’ changing needs and interests.
Differentiate, Innovate, and Customize
Many businesses are able to grow during an economic downturn by finding ways to differentiate themselves from their competition and innovating. Regularly introducing new services or products while implementing customization and having a customer-first approach can make the difference between business slowing down, stopping, or growing. Keep your customers top of mind and strategize. The Foster Consulting Firm has put together a free New Business Kit, including a continuous business resource sheet to support businesses. Sign up to receive it here.