Keep Your Small Business Afloat in a Turbulent Economy

‘Designing Strategies’ eNewsletter

September-October 2008 Volume 5 — Issue 24

With all of the drastic changes in our economy over the past year, it’s not hard to realize we are in crisis mode. First, gasoline prices went sky high overnight. Then the rampant mortgage foreclosures hit. Now we learn that Lehman Brothers has gone bankrupt. These are certainly more than a little bit tempestuous times for small businesses. What are you going to do to keep your small business afloat in these turbulent economic times? What can you do?

Our economy just seems to be bouncing up and down like some crazy guy bungee jumping off a bridge. Recently, I’ve been feeling like that guy – attached to the top of the bridge by a mere harness, taking that giant leap toward the river below. He drops quickly toward the water, then reaching the limits of the elastic cord, he is jerked back upward toward the bridge. Then it’s down again, then up, then down, then up; until the momentum from the initial jump is dissipated. Then, he’s just left dangling over the water. until someone comes in a boat to get him.

Dangling is a perfect description of what is happening to small businesses right now. Personally, I’m tired of being jerked up and down by this economy. I anxiously await calmer times when we can get back to business as usual. I’m tired of wondering what might be around the next corner to shake up our lives. In the mean time, we have to do something within our small businesses to survive this turbulent economy. We all need to determine how to cut costs to survive this economic upheaval. It is imperative that you keep your small business afloat until the economy levels off.

How to Keep Your Small Business Afloat When Customers Aren’t Buying.

The bad news is customers have become cautious about buying anything. They aren’t sure how long this will last, and are being ever more anxious about spending money. The cost of fuel has drastically increased the cost of doing business, and will likely remain costly for the near future. Absolutely everything is somehow tied to the cost of fuel. Some have added fuel surcharges to their invoices for delivering product to their customers, others have simply raised prices. The airline industry has become quite creative finding ways to generate additional income to offset the cost of fuel that is crippling that industry.

How can you use these uncertain times to your advantage? Some use chaotic times to analyze and improve their businesses. Now is the time to take an analytical look at how you run your business; review systems and processes, and put your finances under the microscope.

When times are good, who has time to worry about these things? We just keep moving forward, trying to keep up with customer orders and demands. Now is the time to step back, take a critical look at your business and find ways to reduce costs, and make operations and production more efficient. Another approach is to sell more to increase revenues. Can you increase sales with existing customers? How can you attract new customers? Which path is best for your organization?

How Cost Reductions Can Help Keep Your Small Business Afloat.

How can you reduce your costs of doing business? When was the last time you renegotiated discounts with suppliers of office products, or looked at their competitors for better pricing? How about the company printing your marketing materials or making the packaging for your products? Are there other products now on the market that might work as well or better at a lower cost?

Can you better utilize the Internet and your web site as your primary marketing and education tool? This strategy can work to reduce costs for sales staff to visit customer locations. Adopt an Internet telecommunication site to host staff meetings, client presentations and educational seminars. Think how much could be saved on airfares, hotels and meals. Discount stores seem to be staying above the fray. Is there a discount or discount product line you might offer customers?

It’s time to get creative. Look at all facets of your business to see what changes can be made. Consider what you can reduce, adjust or implement for cost control. Strategic plans should be flexible to deal with changes, both the ones you expect and those you don’t expect. If ever there was a need for flexibility in your strategies, that time is now. It is time to take diversionary steps from your strategic plan to stay above water until the current chaotic economy settles down again. It is up to you to set strategies that help to keep your small business afloat.

Continuing Education Opportunities!

Looking for a way to bring customers into your showroom, or attract new customers? Educational presentations may be the answer. I would be interested in presenting one of our Business Success continuing education programs or speaking on industry trends and business topics. Business topics range from personal branding, starting and growing a business, to charging fees based on value. Other popular topics focus on generational diversity. Designing for the Generations, Market and Sell to the Generations, and Recruit and Retain an Age-diverse Workforce are popular programs.