When the economy slumps, many small business owners look for ways to cut costs and maintain profits. They review their financial situation, cash flow, revenues, hiring and credit availability.
So, what more can you do to make sure your small business survives?
Focus on your core business and resist the temptation to detour into other areas. Grow your awareness of what’s working for your business and your market, and find where the gaps are.
Focus on the customer. The more you know about your customers and the more they know about your products and services the greater your opportunity to build relationships that will grow your business. Every contact is an opportunity to increase sales and profitability.
Get to know your banker. Even in challenging times, your bankers can be your most important financial resource, offering a wide range of financial solutions tailored to your specific small business needs,.
Your bank also offers another essential benefit, a productive, ongoing relationship that can work to your financial advantage.
Maintain your financial flexibility; monitor financial statements carefully and make sure you understand your sources of revenue and expense, including your receivables and inventory. Cash flow is king for surviving and thriving.
Look for a financial services provider with Internet tools such as online statements and spending reports that allow you to monitor “real time” expenditures.
Grow your savings and investments to maintain equity and liquidity. Seek technology resources that can speed and refine your ability to deliver value. Use the Internet to tap into talent that can expand your capabilities without increasing your payroll. Hire and retain good people. Build a team of advisors. Your banker, attorney, CPA and other successful entrepreneurs can be valuable allies and help you identify resources and solutions to help your business grow.
Tough times force us to think of better ways to reach our goals. By keeping a close eye on your business and your markets, remaining agile and following sound management practices, your small business can survive – and thrive – while the economy improves.
Rick Resseguie can be reached at his Wells Fargo office in Everett at 425-252-1620 or by email at Richard.Resseguie@wellsfargo.com
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