Staying Successful in a Tough Economy

success written on a chalkboard Although the economy is gradually showing signs of positive change at the present, it is certainly different from what we were used to. This unfortunately means that it can be a tough time for many small businesses. While there are still numerous challenges ahead, there are certain strategies you can adhere to in order to improve your business in an uncertain economy.

Depending on the type of industry you are involved in, there may be certain times of the year when your business will slow down. This is typically the perfect time to examine your plans to improve your company. While some will take the time to look deeper into cutting costs where it is most fitting, there are other processes that can be done too. Taking the clients you already have and strengthening these relationships is a great way to augment customer retention as well as opening the doors for further sales opportunities. This is also a good time to start prospecting for new clients or even refining your current business plan.

With the economy still in a state of recovery, it is wiser to play it safe instead of taking a risk that fails to pay off; most business owners state that they consider themselves more conservative when it comes to financial risks. As such, until trade and production levels improve, small businesses find it better to wait before committing to any big strategic shift.

Make sure you have a disaster plan in place through your insurance, both for your physical location and your data. This will give you peace of mind if any kind of catastrophe were to strike. Without the correct insurance, if a disaster were to hit, a small business owner may not have the finances available to rebuild from scratch. This also gives you the ability to restore your business or recreate your entire infrastructure if there was a data breach, two things a business simply cannot afford during a "slow period."

Every small business will hopefully plan on expanding, but when the economy encounters a substantial downward turn, it is best to limit investments for expansion. Some small business owners even cut down their own compensation, while others choose to hire less to save on payroll in the long run. Last of all, if you need to, cut costs. Start by cutting expenses that are taken out of your business, which will obviously mean no more using the company credit card to dine out or pay for gas.

Most small business owners define success as doing something they enjoy or feel passionate about. At PADGETT BUSINESS SERVICES®, we have been helping the small business industry for more than 40 years and our experts are here to help your business thrive.

Do you have the support you need to manage your small business bookkeeping? Contact us to schedule an appointment to speak with a local small business advisor.