As a small business owner, you know how the uncertain can hit your business any time and you don't want to wait for any economic turbulence, instability and anything related to hit you bad before you plan. Yes, you can't make sure that all your bases are covered but it still makes sense to arm yourself with the necessary tools as early as now so when an unforeseeable event, occurs your business is equipped enough to survive every potential threat.
1. Take a closer look on economic indicators.
Keep yourself abreast of the latest economic forecasts, current trends, and the general state of the economy. When you're well aware of how these can affect the industry where your small business belongs, you can make more well-informed decisions.
2. Review your business plan.
While most business owners revise business plans once a year, the truth is there's no limit to how many times you can revise it (because you're the boss!). Thus, it pays to take time to sit with your key employees to revisit it. Put a special attention to key indicators such as cash burn rates, debtor days, and anything related to the cash flow. This will help ensure your small business goals are reached while working on combating the changes in consumer demands. More importantly, it will help your company to stay afloat amidst crisis.
3. Consult the experts.
There are future events you can't forecast even if you've been doing business for a long time. This include increases in leases, interest rates of your small business loans, and business rates hikes. For this reason, it pays to lean on the expertise that experts and business advisors provide. While it looks like another expense for your business at the onset, you'll be surprised how much money they can help you save.
4. Focus on having a strong cash position.
There's a chance that a high percentage of your sales are on credit. If so, there's a greater risk for your cash flow to suffer. To avoid this from happening, take active steps to manage your accounts receivables and invoices.
5. Consider a number of possible scenarios and prepare for all of them.
Understand that placing a bet on multiple options rather than concentrating on that one right guess will be more beneficial to your small business. When you think through a variety of plausible scenarios and work on strategies for all of them, you'll be better prepared and armed if any of those occur.
6. Build strong relationships.
When times are tough, it pays to have business partners and other small business owners/peers to help you get back on your feet if you've been hit hard. This is why it matters to build strong relationships and establish trust with your peers and partners. When they find you trustworthy enough, you can be assured that they'll see you through any unpredictable storm.
Uncertainty is inevitable regardless of the industry where your small business belongs. Despite this, if you stay abreast of everything you needed to be informed of, constantly listen and observe events as they happen, you'll be able to respond quickly and accordingly and empower your employees to do the same. This may just save your small business from the damage unprecedented events can cause.