Unprecedented times such as the COVID-19 pandemic call for a fearless and positive mindset. However, keeping a company running during such tough situations calls for more than a positive mental attitude. So what can business owners do to turn their business around when times are tough?
Check these five savvy approaches for keeping your business afloat when the going gets tough:
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Continue to push your business
– Generating viable leads is essential for the survival of any business, especially when things look bleak. And marketing smartly is one of the best ways for achieving this. Because even if you have the greatest product or service on the market, customers will never know about it if you don’t tell them about it.
One of the best ways to do so is to leverage inbound marketing tools. HubSpot, which is often credited with coming up with the concept of inbound marketing, defines it as “a business methodology that attracts customers by creating valuable content and experiences tailored to them. While outbound marketing interrupts your audience with content they don’t always want, inbound marketing forms connections they are looking for and solves problems they already have.”
In challenging times, another route to take is to grow your business organically. Organic growth refers to the growth of a company through internal processes, relying on its own (existing) resources. This method yields tangible results, while keeping employees focused on marketing, sales, customer service and innovation.
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Ensure you have access to cash
– Even the most stable of businesses can take a hit without warning, which is why it is a good idea to always expect the unexpected.
As a small business owner, you must ensure that you always have access to cash, particularly in periods of crisis. A good first step is reaching out to a bank loan officer and understanding the requirements for obtaining a loan as well as opening a line of credit in advance to fund possible short-term cash flow problems.
You should also have other potential sources of funds lined up, including liquidating stock holdings, tapping into savings and borrowing from friends or family members.
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Reduce costs smartly
– Lowering costs is crucial when you are faced with a challenging period. But, you must do it creatively so you don’t cut too much and affect business operations. Some ways of freeing up enough cash to be able to continue operating is to invite clients to the office instead of meeting them over lunch or opting for a remote workforce (if feasible) to save on office overheads.
One important thing to remember is to always keep the customer first. While making tough decisions, make sure you are not hurting your customers’ experience.
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Never compromise on quality
– Even though keeping costs under control is crucial in tough times, you must ensure not to sacrifice the quality of finished products or services.
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Record and study your data
– Never underestimate the power of tracking data within your company, as it can provide valuable insights that you will not find elsewhere. Create a database and update it regularly to reveal forecasts and trends that can help you to take advantage of opportunities or prepare you for tough times. This information can help you make informed decisions and rely on data-driven evidence.
