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Businesses today continue to face the challenging economic times head-on. The world right now is chaotic, and many entrepreneurs have been on the receiving end. With the COVID-19 pandemic, most businesses shut down, while others are working hard to stay afloat. When things get tough, become tougher and hold on to optimism. No matter the circumstances, you can keep your business doors open even during the most challenging times with the following clever ways.
Cut costs
When times are challenging, you can’t afford the same luxuries you used to enjoy. Your priority at this time is to survive and keep your business afloat to prevent its collapse. Do your due diligence and determine the expenses that your business can survive without and areas where you can cut costs. For example, you can reduce the workplace benefits and perks such as paid vacations, bonuses, and office lunch. Review the business perks and agree with the employees on which ones to do away with until you get back on your feet.
Manage debt
Taking debts is a normal and okay action for businesses going through tough times. However, failure to manage it proactively and taking more than you can pay can lead to bankruptcy, auctioning of assets by financial institutions, and eventually business closure. Anchor Law Firm can assist you in filing a chapter 7 bankruptcy to keep your business open, but it is advisable to manage your debt to avoid struggling to stay afloat and dealing with creditors.
Think out of the box
Old strategies in your business may not work amid an economic recession. Think out of the box and develop new strategies that fit the current circumstances. Come up with creative business ideas to keep your doors open. Allow your employees to make suggestions, research gaps in the market that you can satisfy, and listen to customers’ perspectives and needs. Reach out to your networks for ongoing opportunities and diversify your products/services.
Boost employee performance
Now, more than ever, you should count on your employees to increase their productivity to keep your business doors open. However, it takes a lot more effort to motivate them, especially when you're doing it virtually due to the COVID-19 pandemic. You need to step up as a leader, develop clear lines of communication, and be there for your employees. When times are tough, employees need constant reassurance due to fear of losing their livelihood. By communicating to them, you boost their morale by making them feel secure about their jobs.
Form partnerships
Sometimes, it's necessary to recognize when you need help. For example, if your business can't stand on its own, consider forming partnerships with an established business in your industry. With a partner, you can cost-share the expenses, pool resources, and acquire a large customer base. Alternatively, you can partner with a complementary business to diversify products to enhance marketing and attract more clients.
Bottom line
Part of doing business is facing the challenges that come with it head-on. Sometimes, they may be a stepping stone to greater things. While you may be unable to do much, you can do better.Lead your business to success by thinking out of the box, cutting costs, forming partnerships, and managing debt proactively.