Business Survival Tips in a Changing Economy
Prepare to take action to help your business stay nimble when faced with an unpredictable economy.
As national and regional economic indicators continue to shift, finding ways to be innovative and resourceful can give your business an edge. No matter what happens next, businesses that are quick to adapt to changing circumstances have the best chance surviving and thriving in the future.
Here are some tips that may help your organization remain nimble when faced with an unpredictable economy:
Adjust your business plan. Reevaluate your current position and consider best- and worst-case scenarios. Decide what you can do to adapt, whether it’s stepping up marketing, raising or lower prices or adding a new product.
Take control of your cash flow. Prepare a short-term cash projection reflecting cash coming in and going out over the next 60 to 120 days. Be proactive with accounts receivable to speed collections, if possible. Cut expenses to the bare minimum and pay only necessary items like taxes and overhead costs. Work with suppliers and other creditors to develop a flexible repayment schedule. Manage incoming receipts and accelerate receivables with the right technology and tools in receivables management.
Brainstorm ways to boost revenue. Explore strategies to increase revenue, such as offering modified services, rethinking how products are delivered, focusing on online sales and providing discounts and special promotions.
Stay on top of deadlines. Closely manage upcoming bill payments for accounts payable, loan payments and credit card payments. Use online banking and automated ACH services to maintain a consistent payment schedule, avoid late fees and keep vendor relationships on good terms.
Time your purchases. If you’ve had a business slowdown, you may be dealing with an excess of inventory that needs to be sold. Take stock of what you have and adjust future purchasing based on current trends and expectations for the coming months. In some cases, you may be able to leverage the value of receivables and inventory as collateral to secure financing. Learn more about working capital solutions designed to increase business cash flow.
Consider leasing rather than buying. If you’re in the market for new equipment or facilities, consider whether it makes sense to lease rather than buy. Leasing may preserve much-needed capital as well as provide more flexibility and liquidity under changing economic conditions. Equipment leasing provides the opportunity for 100% financing with no down payment on a broad range of equipment types.
Explore borrowing options. The Small Business Administration (SBA) offers a range of loan programs designed to help small businesses during difficult economic times. Learn more at sba.gov/disaster. Please contact your business banker if you have questions about SBA programs offered or loans serviced through Amegy Bank.
We Can Help.
At Amegy Bank, we want to work with you to find solutions and improve your company’s financial position. Contact our team at Amegy Bank and we can work together to help your business thrive.