At some stage, every business goes through a lean period. One month a business could be selling so many products they’re struggling to keep up with demand. The next month they may struggle to give away items for free.
These dips in trade are normally associated with seasonal businesses, but it can happen at any time and for any reason. Perhaps a competitor has undercut your prices? Maybe your products have become obsolete due to new releases, or your brand’s reputation has taken a hit?
When your business does struggle, it’s all about surviving the tough times and getting out on the other side. To do this, there are various steps you can take.
Analyse the big picture
Before you do anything, it’s important to take a step back and analyse your business on the whole. By doing this, you have the opportunity to not only spot existing problems but also comprehend the scope of said problems.
For example, you may realise that the pricing of your products or services isn’t falling in line with industry standards. Or you might notice that an employee isn’t pulling their weight. Once any issues have been identified, you have the ability to rectify them before they cause too much harm to your business.
Refine your marketing
If a business wants to be a success, it has to dedicate an ample share of its resources to marketing. This helps to attract those all-important new customers, as well as entice existing ones to continue purchasing their products/services.
This means you don’t want to sacrifice your promotional efforts, especially during any rough months. Yet you can still save money by refining your marketing techniques. Instead of splashing out on, say, pay-per-click ads or print media, you can focus on creating social media content and blog posts – avenues that are essentially free to use.
Shift old inventory
If your business possesses an extensive amount of old inventory, it’s time to turn this unnecessary expense into short-term cash flow. As Veeqo highlights in their guide, there are numerous ways in which this can be done. You might place the items in a promoted sale, or you may even use them in a competition to bring visibility to your business.
Receive a financial boost
If you’re struggling to bring in any extra cash, you will have to look for alternative ways to receive additional finances. This is particularly the case if you have urgent bills that need paying.
One of the most effective methods is to receive a small loan. As Cash Lady notes, this is an easy way to acquire funds immediately. Plus, the amount of interest can be significantly lowered if you have the ability to pay the loan back early.
Don’t cut back on quality
If you’re trying to reduce costs, it can be easy to look at your own products or services, and see where you can cut expenses. For instance, a restaurant could decide to use cheaper cuts of meat or frozen food.
It’s important you avoid going this route. By making your offerings inferior to what they were, this is a sure-fire way of losing any loyal customers.