Running a Business in a Tough Economy: 7 Tips for Success

The tough economic times have brought a whole host of challenges, making startups particularly vulnerable. From reduced sales to increased costs of operations, the list of threats that can cripple your venture is endless.

Fortunately, there are tried and tested ways to recession-proof your operations and give your business a chance to survive and thrive in the tough economic climate. Here are some of them.

1. Protect Your Cash Flow

The lifeblood of any business is its cash flow. Money flows out in the form of expenses and helps you to keep your operations rolling. It also flows back into the business through various revenue streams. Your bottom line is the difference between your revenue and your business expenses.

The surest way to protect your cash flow is to implement strategies to increase billable services and sales while cutting back or postponing unnecessary expenses. For instance, you can cushion your business by slowing expansion plans or reducing partner and business owner compensation rates.

Here Are More Tips That May Come in Handy:

• Know where your business breaks even and hits a profit line
• Implement cash flow management strategies
• Don’t forget to create and maintain a cash reserve
• Create a cash flow worksheet
• Extend payables while ensuring quick collection of receivables
• Take full advantage of technological advancements to save time and cut operation costs.

2. Maximise on Fuel Card Benefits

Vehicle-related expenses take up a considerable fraction of the daily operating costs of any business. A fuel card allows you to acquire fuel, oils, and vehicle lubricants using interest-free credit. This gives you improved cash flow while giving you more control over your fuel consumption and budget.

Fuel Cards come in handy for both large and startup businesses. You can keep your fleets moving and your business running while keeping an eye on fuel economy and addressing unnecessary inefficiencies.

3. Capitalise on Your Existing Client Base

It’s tough to attract new business, with everyone feeling the wrath of the economy. This is the opportune time to maximize the potential of increasing your sales through your loyal customers. You can use feedback systems to know what your customers want and make them happy. Meeting their needs can increase your chances of maintaining high sales during the recession.

4. Revamp Your Marketing Strategies

It’s easy to fool yourself into cutting back on your marketing budget to protect your cash flow. Beyond debate is that your business needs to implement marketing strategies the most during choppy economic environments.

Note that the tough economy also affects consumer patterns, and marketing will ensure they choose you even as they adjust their buying or spending decisions.

5. Rethink Your Marketing Strategies

Even in tough economic times, it is possible to maintain your PR and marketing strategies without going dark entirely. If the unfavorable times are straining your budget, consider creative approaches from different angles. The idea is to enhance your market presence without going overboard.

6. Spruce Up Your Credit Scores

The economic meltdown makes borrowing harder, especially with an iffy credit rating. Fortunately, there are some things you can do to enhance your creditworthiness and keep your rating in good shape. They include:

• Use a secured credit card and pay your balances strategically
• Ask for higher credit limits
• Become an authorised credit card user

You might also consider taking advantage of fuel cards. These can allow you to boost your credit score and at the same time give you access to discounts and free fuel reports.  

7. Build Team Morale 

It’s nearly impossible to weather tough times with a discouraged team. Your business is only as strong as the morale of its employees. Start by setting a good example as the team leader. You can do this by maintaining a professional and uplifting vibe and staying positive even when facing the storm.

Conclusion

The tough times don’t necessarily doom your business to a kiss of death. Implementing the above tips can help you survive a recession and possibly even make crazy profits along the way.

The surest advice is to remain true to your business mission and vision and keep pushing through the difficult times.