Nov 3, 2017
Small to medium businesses will often be impacted by the environment around them, more than larger firms. Here are some tips on how to survive during in hard times.
Create a business survival plan – Create a scenario where your sales are falling by x % and how you would cut expenses, increase sales, maintain or re-establish a certain profit margin. Your plan should be as detailed as possible.
Prepare a current profit-and-loss statement and cash flow analysis – Understanding your business’s numbers is a useful way to know where you are heading and to change your direction. Match your past performance for similar months to properly understand how to proceed.
Establish an advisory board – Look at bringing together a small group of people who can advise you on your survival plan. Let them come up with scenarios that will challenge your plan, which will you’re your plan realistic and applicable.
Short term – Look at a short-term plan that ranges from one to six months and look at simply breaking-even.
Medium-term – Your medium-term plan should look at the next six to eighteen months of your business and consider a plan that creates profit. Base your profit on cost cutting and using new marketing initiatives to increase revenue.
Long-term – A long-term plan should go beyond 18 months and return your business to making a profit. To make long-term profits, look at business enhancing initiatives that provide a solid return.