According to data gathered by Fundera, 20 percent of small businesses fail within the first year of operations. This percentage grows to 30, 50, and 70 percent in the company’s second, fifth, and tenth year in business, respectively. It shows that keeping an organization afloat might be even more challenging than building it from scratch.
Indeed, maintaining a steady course among all the chaos is far from being a walk in the park. It requires constant vigilance, seeking out potential threats even during times of relative peace. However, it gets really tough to accomplish this goal during hard times.
That being said, there are some ways you can explore to make your enterprise more resilient against the problems that might get thrown your way. Investing in reliable technology, searching for free alternatives without sacrificing quality, and preparing potential sources of capital for a rainy day can help you overcome the challenges.
Here is an in-depth analysis of the best methods you can follow to ride out the storm and right the ship:
Keep Your Technology Updated
When times get rough, one of the first things you should do is make sure that your technology is reliable. In fact, it’s more important than ever before. By making sure that your systems are top-notch, you can keep your business running smoothly amid all the chaos around you.
Technology can help you save money, improve communication, and make your business processes more efficient. Furthermore, it can also act as a safeguard against potential cyberattacks. For these reasons, it is crucial to invest in reliable solutions and keep your technology updated at all times.
If you are still using outdated software and hardware, it is time for an upgrade. Not only will this make your business more efficient and productive, but it will also make you more secure against online threats. For example, if you still use regular fax, you can switch to cloud-based faxing services. To enjoy a smoother faxing experience, all you need to do is download a free fax app for iPhone or Android.
Upgrading your technology can be expensive, but there are many affordable options available on the market. Establish what technology updates can bring the most substantial benefits and implement them into your business model.
Seek Out Free Alternatives Without Sacrificing Quality
One of the first things that come to mind when you think of budget-cutting measures is discarding all the tools and resources that have been giving your business less value than expected. In times of financial hardship, every penny counts. Still, you should not sacrifice quality in order to save money, as there are many high-quality yet free alternatives to expensive commercial software and services.
For example, you can use Google Docs instead of Microsoft Office or opt for a free CRM. Alternatively, you can check out affordable online storage services like DropBox and iCloud that offer many features for a fraction of the price of competitors.
There are plenty of ways to reorganize expenses without affecting your ability to deliver the best possible experience to your customers. Take a close look at your internal and external resources, and see what functions can be passed on to some third-party solutions that bring more value for less money.
Prepare Potential Capital Sources for a Rainy Day
In business, you can be sure that a few stormy days will arrive sooner or later. It’s crucial to ensure that your company is not left high and dry during these periods of hardship. Instead, you want to be able to weather the storm by having a ready cash reserve at hand.
First of all, you can look into your personal finances. Most small business owners take out personal loans in order to fund their start-ups. The good news is that this money doesn’t have to be paid back until the company starts turning a profit.
Second, your business might have a line of credit with a bank. Banks are happy to extend lines of credit to small businesses, even if they don’t have strong credit ratings. In some cases, these lines of credit don’t have to be paid back until the company starts making significant profits.
Finally, your company can raise startup capital from friends or family. You might need to offer them stock as a form of compensation in exchange for their investment, but it’s usually worth it because family members and close friends care about the long-term success of your business.
Get Creative With Your Marketing
There is no doubt about the importance of marketing for a small business. It is the way in which you reach out to your target audience that determines the success of your brand. In fact, marketing is one of the biggest challenges small businesses face these days. The primary concern of many companies is finding a way to cut through the clutter.
Today’s competitive market makes it very hard for small businesses to stand out from the crowd and get noticed by potential customers. However, there are still ways that small businesses can use to market themselves even in challenging times.
In order to survive the economic difficulties, you need to focus on finding new ways of reaching out. If you have been relying on paid advertising, now might be a good time to make the switch to free channel opportunities. One way of doing this is by submitting your articles to business-related blogs or websites.
It would also be great to capitalize on social media platforms since they are relatively cheap compared to other marketing channels. In addition, they enable you to interact with your customers directly without having to spend much on paid advertisements. Social media networks like Facebook and Twitter are great places to start with.
Conclusion
The journey of a thousand miles begins with a single step. The same is true for the survival of your small business. It requires preparation and vigilance from the very start, and you can achieve these two through the strategies mentioned above.
As the saying goes, “all businesses are local.” When you’re in the throes of an economic downturn, you need to take a step back and assess the situation. If you can’t see any clear way out, there are several ways you can manage your expenses to stay afloat.
Not every strategy will work for every organization since every business is unique. Nonetheless, there should be at least one that works for you. You can also combine them to maximize their potential. So what are you waiting for? Get going!
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