Are we moving toward a recession or is there too much FEAR (False Evidence Appearing Real) right now? Only time will tell, but small businesses have the benefit of adapting to change more quickly and efficiently than large companies do.
The following are some helpful tips for small businesses from the recent issue of CMTC Small Manufacturers Advantage e-newsletter.
• Don't get caught off guard if the slowdown hits your business. Take some time now to prepare a worst-case, 12-month cash flow scenario. Assume a 10 to 20 percent drop in revenues and identify what changes you would make and when.
• To keep your company lean, set inventory targets and keep in closer communication with your sales and ops staff. This may also be the time to weed out unprofitable customers.
• Develop new strategies to land more customers. When the pie is shrinking, the successful small business has to win a bigger piece of that shrinking pie. The way to do that is to create a positive experience every time. Bond with your community, join local organizations such as the chamber of commerce and spread goodwill.
• Spend on hiring. Professionals say that business owners should hire, not fire, during a recession. Downturns are usually short-lived and you should keep the bigger picture of long-term growth in sight. This also may be a good time to pick up some great talent.
• Continue your marketing efforts. The first instinct of many small businesses is to cut the marketing expense. What you don't realize is that this could make things worse. You may want to choose cheaper marketing alternatives such as e-mail marketing, blogs, public relations and online newsletters.
• Keep your personal credit ratings high since borrowing depends on it. Curb your spending and try not to incur those extra charges or higher interest rates.
For a copy of the CMTC Small Manufacturers Advantage e-newsletter, e-mail Joanne Abbott at [email protected].
The following are some helpful tips for small businesses from the recent issue of CMTC Small Manufacturers Advantage e-newsletter.
• Don't get caught off guard if the slowdown hits your business. Take some time now to prepare a worst-case, 12-month cash flow scenario. Assume a 10 to 20 percent drop in revenues and identify what changes you would make and when.
• To keep your company lean, set inventory targets and keep in closer communication with your sales and ops staff. This may also be the time to weed out unprofitable customers.
• Develop new strategies to land more customers. When the pie is shrinking, the successful small business has to win a bigger piece of that shrinking pie. The way to do that is to create a positive experience every time. Bond with your community, join local organizations such as the chamber of commerce and spread goodwill.
• Spend on hiring. Professionals say that business owners should hire, not fire, during a recession. Downturns are usually short-lived and you should keep the bigger picture of long-term growth in sight. This also may be a good time to pick up some great talent.
• Continue your marketing efforts. The first instinct of many small businesses is to cut the marketing expense. What you don't realize is that this could make things worse. You may want to choose cheaper marketing alternatives such as e-mail marketing, blogs, public relations and online newsletters.
• Keep your personal credit ratings high since borrowing depends on it. Curb your spending and try not to incur those extra charges or higher interest rates.
For a copy of the CMTC Small Manufacturers Advantage e-newsletter, e-mail Joanne Abbott at [email protected].