Tips for Growing Your Business Through Tough Times
By: Ravinia Jaide, Guest Blogger
Starting a business is never easy, but keeping it running is even harder. With economic downturns being part and parcel of the current state of the world, small business owners need to make sure they’re prepared for the worst. Recessions often hit small businesses the hardest, and many don’t make it through to the other end. That’s why it becomes doubly important that you focus not just on surviving, but also on growing your business through tough times. While every company’s situation is unique, here are a few helpful tips for thriving in rough waters.
Don’t Panic
The first thing you need to do as a small business owner is don’t panic. Take stock of your situation and learn to identify what aspects are and aren’t actionable. What’s changed? What can you offer your customers in this specific period? Before overwhelming yourself with the dangers ahead, it’s important to map out specific plans of operation that you can follow. This means deciding which part of “business as usual” you’re going to be relying on.
NSBC founder Mike Anderson claims that you need to make sure your sales pipelines are functioning properly, especially during a crisis. These are your lifelines, and will make sure that money is still flowing into your company against all odds. Ensuring that you’re still able to offer the quality products and services to your customers despite the crisis is a great way to instill confidence in them and keep them coming back.
Re-evaluate Your Foundation
One thing you’ll need to do early — as early as starting your business, even — is evaluate your foundation. Small businesses that are serious about growth and scaling have to think about their legal structure. Is there room to grow? Is there flexibility? In these cases, it may be time to move beyond the idea of a typical sole proprietorship towards a model that offers more protections.
Some of the best protections are offered in the S Corporation or Limited Liability Company (LLC) structures. These structures have more liability protections, meaning you’re less likely to lose all your personal savings trying to keep your company afloat. When deciding whether you should form an LLC or go for an S Corporation, consider the main differences between the two. S Corporations are more appropriate if you’re looking to expand abroad, while LLCs have more flexible management structures and less complicated procedures. Outlining and understanding these differences can go a long way towards protecting your livelihood during rough periods.
Get Ready to Adapt
We’ve previously written on how the workplace will change after COVID-19. While this article is specific to the global pandemic, it does prove a very important point. Businesses need to make sure that they’re ready to adapt to big shifts at all times.
Companies need to be able to prepare plans B, C, and so on in the face of prospective crises. Do you have a company-wide communication system in place? Do you have fall-back plans? How willing are you and your employees to learn new techniques and technologies? In a crisis situation, fortune favors the well prepared. Although it’s impossible to anticipate every little shift, ensuring that you have the right mindset and structures to approach change can make all the difference.
Understand Your Customers
Finally, the last thing you’ll need to do is to focus on your bread and butter: your customers. If you’re feeling the pinch, so are they. When you approach your customers, you need to make sure that you’re adding value to their lives, rather than taking it away.
Harvard Business Review outlines five key strategies for retaining customers during a crisis. These strategies are, 1) humanize your company; 2) educate about change; 3) assure stability; 4) revolutionize offerings; and 5) tackle the future. This framework reassures customers that, although big changes are happening, your company is still ready to serve them to the best of its ability. Compassionate action, rather than empty platitudes, is what will keep your customers coming back.
