Everyone has been struggling to keep on top of things this year, especially businesses. Often, companies aren’t as well equipped for financial difficulties as they’d like to be. If you’re a company that’s struggling to stay afloat during the current economic crisis, keep reading for some tips.
Tighten your budget
It goes without saying that when the worst happens and you’re financially struggling, the first step should be tightening your budget. A few pounds here and there might not seem like much when your company is going well, but when money is a bit tighter, these extras can make the difference between floating and sinking, financially speaking.
To start with, you’ll want to analyse every outgoing commitment your business has and then work out which are essential, and which aren’t. Any that fall under the non-essential category need to go. Remember that you can always reassess when things change.
Renegotiate wherever possible
During tough financial times, debt is the main driver for bankruptcy. The worst thing you can do is ignore it and hope it goes away. Instead of doing this, see if you can renegotiate your debts. If you have a history of paying on time, your lenders might be more willing to help you out by accepting smaller payments or allowing you to pay the debt back over a longer time period.
Although this doesn’t cancel the debt and, in some cases, actually makes it more expensive, it will help you in the short term.
Cut back on marketing expenses
There’s a fine line between cutting back on marketing expenses in a beneficial way and cutting back to such an extent that it negatively impacts your business. Continue with your marketing efforts but focus more on efforts that don’t involve a great deal of money.
Focus all money and energy on a couple of effective marketing strategies for as long as you need to. Perhaps even collaborate with other businesses and see how you can benefit one another, either in terms of marketing or elsewhere.
Look for new opportunities
Financial difficulties mean that different needs have to be met. The only way to achieve this is with innovative solutions. Work with your team to work out how you can meet customer needs during this time. You might want to look at how driving customer engagement with webinars could be beneficial, for example.
It’s important to remember that even if your customers aren’t able to help you financially, they can help you to boost your reputation and improve loyalty, so keep them at the centre of your thoughts.
Concentrate on morale
When times are hard it’s easy for everyone to get stressed out. Make a conscious effort to remind staff how valued and appreciated they are. When you work to motivate them and encourage them to develop ways to increase productivity, you’ll be helping to keep the company on solid ground and ensuring everyone sticks together to ride out the difficult patch. A financial crisis is never a reason to turn on one another.
In such uncertain times as these, it can be as stressful for business owners as it is for individuals. But with these ideas in mind, you can make more informed decisions to try and weather the cost-of-doing-business crisis.
