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Feeling the Economic Crunch? |
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Tighten up Your Budget
Look realistically at your current budget and expenditures to determine what "fat" you can trim. No one likes to let employees go or give up what they have become accustomed to, but it may be necessary for you to take a few steps backwards if your business has been affected by the "ripple effect" of the declining housing and stock markets. Most new business owners work very long hours and learn to do without in the beginning. If you have run a successful business that has expanded over time, you may have lessened your own workload and become more reliant on others to keep things running smoothly. Do you really need a bookkeeper, payroll service, janitorial service, window washer, etc. or are these some things you can do yourself? Now may be the time where you need to step out of your comfort zone and once again take on a heavier workload yourself. No one wants to "start over" again. However, to remain stable it may be the best option for you right now.
Size Up Your Competition
Even if you have not had to worry much about your competition in the past, it may be something to examine now. If you are feeling the "squeeze" , chances are your competitors are too. Now is the time to "scope out" your competitors. Find out how they operate and what they may have to offer that you do not. Focus on trying to determine what you can do to gain an edge in the market. What can you do better and how are you going to get the word out to your customers?
Hang in There
You may not have had to inject more money into the business for some time, or you may have not had to go without a regular paycheck since beginning your business, but it may time to face the reality that you may have no other options. Evaluate your credit card limits, extend them if possible and open a line of credit for the business if you do not already have one. You may need it to maintain cash flow during hard times. Remember to use your credit wisely. You want to avoid turning an economic set back into a financial disaster. Perhaps you need to consider diversifying and/or expanding your service or product line to a new market? Maybe it is time to rethink the focus of your business to change with the times.
We all know the saying "When the going gets tough, the tough get going!" Be one of the tough and don't give up what you have worked so hard for without a fight! |
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Mohave Community College Small Business Development Center Newsletter
