Starting and running a business has never been easy. It takes a lot of grit and determination even in the best of times. Suddenly, the red-hot economy of 2019 has come to screeching halt with entrepreneurs trying to figure out PPP loans and how they can stay in business while working remotely.
Here are four tips you can use to help you succeed in spite of the economic slowdown.
- Tip #1 – Make Sure Your Business Model is Still Viable – Remember your business plan? It’s what gave shape to your dream, helped you get startup financing and defined your value proposition. Your business plan took a lot of hard work to create, but if you’re like most business owners you have not looked at your business plan in light of our current situation. Talk with your employees, financiers, and customers to gain new insights and identify areas that need improvement. You may also discover new opportunities that you hadn’t seen before.
- Tip #2: Audit Your Spending – Even small business often have big expenses, but you might be surprised at how much you could be saving if you only knew where all that money was going. Performing a thorough review of your business spending can help you identify expenses that don’t contribute to your growth. These should be cut or eliminated altogether. You may have to make some hard choices but the time you spend auditing and eliminating your expenses will be worth the effort.
- Tip #3: Analyze Your Cash Flow – Cash flow is the lifeblood that keeps your business going. Unfortunately, cash flow problems can arise suddenly due to a variety of causes. These can include slowdowns in the economy, pandemics, and rising supply prices. Businesses often suffer from slow paying customers. Make sure you maintain good relationships with your lenders and your customers. These relationships will help carry you when cash flow slows down. More and more companies are using factoring as way to speed up their cash flow. American Receivable has helped companies survive economic slow downs for over four decades. American Receivable will quickly turn your accounts receivable into cash, using their easy on-line application.
- Tip #4: Review Your Marketing and Advertising Strategy – When it comes to promoting your business, use more than one platform. Review your SEO, and your online social marketing. Is there a platform your business would benefit from that your still not on? Email campaigns are only as effective as the list you are using.
I hope you’ve found these tips helpful. To learn more about invoice factoring give us a call at 1-800-297-6652. You may also complete our quick application form.