In an ever-changing world, and especially in 2020, your business must be able to adapt to thrive. This side of running a business may not always be easy, but it is necessary if you want your business to survive.
This advice goes hand-in-hand with last week’s blog, which focuses on the importance of using your marketing strategy to get ahead, and how you have to be flexible and take changes in stride as an entrepreneur.
Remember, there’s no point in talking marketing strategies if you don’t have a business to operate. So here it is: 6 things I do that make my business successful that you can do too.
The 6 things that I do that make my #business successful, and that you can do too. Find out what they are here: Click To Tweet
Do a cash flow analysis.
Money is the lifeline of a business. As a business owner, you have a responsibility to yourself and to your customers, to be aware of your cash flow, and what your burn-rate is – no matter how uncomfortable it may be to think about.
Things you should know about your money:
- How much money do you have?
- How much money does your business burn each month?
- When will you run out of money unless you continue to add money to your cash flow?
- Where can you get more money if you need it?
Think about where you can get a temporary cash flow injection into your business- whether it be a line of credit attached to your house, a line of credit for your business, or a credit card.
You have to analyze these numbers to understand where you’re at in order to make proactive choices and decisions about how to move forward.
If you have felt the pinch in 2020, it’s a good idea to start planning for next year. What do you wish you had right now so that you’re in a better situation?
Cut unnecessary costs.
When times get tough, cut unnecessary costs. I’m not suggesting that you cut everything – just what is unnecessary to extend your burn-rate.
For example, I recently went through my bank statements and noticed I was still paying for Audible despite not using the service in eight months.
Acknowledge where you can stop spending money unnecessarily.
As a brick and mortar business, you may also want to reduce your hours of operation. In doing this, you can reduce your payroll and consolidate the sales you make in a shorter period of time. A client of mine did this very successfully, even though she was afraid reduced hours would mean reduced sales – it did not!
Get creative with your sales.
During times of uncertainty (such as 2020 in its entirety), it’s easy to fall into the trap of thinking that your customers don’t want to do business with you. Don’t make assumptions and do them this disservice.
Get creative with what you are selling by offering something useful that will help your customers survive.
Stay connected with your buyers, reach out to them, ask them how they’re doing and how you can help. There are opportunities for you to grow your business through personalization and one-on-one conversations.
Don’t judge someone else’s bank account that you cannot see – ever.
Get over your tech-phobia.
Embrace technology and use it to power your business – it’s a valuable tool that can help you adapt and thrive in any situation as long as it’s a tool and not a distraction.
If you don’t know how to use online technology, now is the time to hire a team to help you, or to lean into learning.
Plan your recovery strategy.
Start thinking about what the next phase of your business is going to look like and prepare for the rebound.
With 2021 just around the corner, business is going to bounce back, and you can bounce higher and faster if you start planning now.
Ask yourself: what will your model look like? What are the things that you want to do differently as you move forward?
The business owners I know who are having the most successful year, are those who were resilient enough to embrace change, adapt to change and find new ways of doing things.
Act like the leader you are.
Leaders communicate clearly and upfront – no matter how hard it may be. Be honest about decisions and embrace difficult conversations.
If you have to lay your team off, or if you are not able to meet your deliverables for a client, you need to have those conversations with people. Don’t pull the rug out from underneath them at the very last minute. Openly communicate and keep them informed with respect to what’s going on.
If you use your judgment, compassion, and open communication, you will be an exceptional leader and business operator.If you use your judgment, if you're compassionate, and if you #communicate clearly, openly and honestly with people, you will be an exceptional #leader and a fantastic #business operator. Click To Tweet
There’s an old saying, “All ships rise with the tide” – meaning do your best to bring the tide in together so that we may all weather the storm.
You have a responsibility to do what you can to help others and share your knowledge where you can.
What is one thing you’ve done this year that has worked? Share in the comments.