Image by Markus Winkler from Pixabay

By Henry Brown

In these challenging economic times, it can be tough for a small firm to remain profitable and operational. Regrettably, there is no predetermined strategy manual to follow to weather the storm and right the ship. Every single small business is unique, and as a result, each one comes with its own set of challenges and opportunities.

Because of these variances, it is impractical to try to replicate the success of another company’s turnaround plan. However, there are certain broad tactics that business owners may take to assist them in stopping taking on water and starting bailing themselves out of their predicament.

Consider the situation in its whole

People have a propensity to tackle the issues that are most readily apparent and immediate with zeal and without hesitation. This is understandable and, depending on the circumstances, it may even make excellent financial sense. However, it is also a good idea to take a step back and look at the bigger picture in order to determine what aspects are functioning normally and which aspects can benefit from some adjustments. It is an opportunity to gain a deeper understanding of the magnitude and breadth of the issues that currently exist, as well as a deeper understanding of the business model of your organization, which includes analyzing how that is strengths and weaknesses come into play.

Take an inventory of your employees

Since payroll is often one of the largest costs that a small business owner has, it makes sense to ensure that the money is being spent wisely. This may entail doing a comprehensive assessment of the workforce, both in the event that a problem emerges and throughout the course of routine company operations, with the goal of ensuring that the appropriate individuals are on board and effectively performing their responsibilities.

When looking to fill open positions, owners of both small businesses and major enterprises frequently make the mistake of hiring people with the lowest possible wages. There will be occasions when you have to question the productivity of those people. During times of crisis, it makes economic sense to hire a single employee who has a wage that is 20 percent more than that of the typical worker but who is 40 percent more productive in their work. Business owners have the ability to boost their company’s productivity by making necessary personnel adjustments whenever they actively seek out new applicants’ resumes and conduct interviews with them.

Ensure that cash is available

The owners of small businesses should take measures to guarantee that their companies have access to cash at all times, but especially during times of crisis, which is something Kenny Natiss talks about in his advice for business continuity. Visiting a bank loan officer and gaining an idea of what is necessary to acquire a loan is a smart first step. Another useful first step is obtaining a line of credit in advance to support probable short-term concerns with cash flow. It is extremely beneficial for a small business to cultivate a positive working relationship with a banker.

Owners of small businesses should have a plan in place for accessing additional possible sources of finance. This may involve withdrawing money from savings accounts, selling stock assets, or borrowing money from members of the family. To make it through difficult financial times, the owner of a small business really has to have access to money or an inventive means to collect funds.

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Henry Brown is an online marketing executive. When he isn’t talking shop, he’s roaming the streets of London, uncovering the extra-ordinary in the ordinary.