Everybody can run a business successfully when the financial environment is encouraging and the economy is growing. The real challenge is keeping a business alive when the market starts to lose the power. When this happens, it is important to have everything prepared in advance. From the relationship you have built with your clients to debt-free bank accounts, everything can play an important role in the times of crisis.
Smartly distributed cash
It is extremely dangerous for every SMB owner to stay cashless. No matter how big your business appetite might be, you should always have some cash for business maneuvering. For instance, if you are planning to buy some stocks, invest in your business equipment, as well as afford your family an exclusive vacation, it is highly likely that you could end up being penniless. Therefore, always set your professional and private priorities, to ensure that you have a certain stash of cash on your bank accounts, at least for the overhead expenses.
Regular account check
Speaking of bank accounts, you should always keep a detailed insight in your current obligations and savings. The greatest thing of being a business owner in this century is that you do not actually have to go to a bank in person, once you have opened an e-banking account. Due to the benefits of online banking, a large number of businesses are already using this service. Firstly, you do not have to waste your precious time waiting in line in the bank. Secondly, you can keep an eye on your accounts on a daily basis. Finally, the transactions you perform electronically are usually faster than ordinary, snail bank transactions.
Treat employees with dignity
Even if you are an experienced and smart businessperson, as well as a real professional in the niche you work in, it will mean nothing if you are not surrounded by loyal and reliable employees. Only startup owners who learn how to communicate with their workers and recognize what makes them happy will be able to keep them on board once the business starts sinking. You should always stay impartial in case of any conflicts between your workers by resolving them so that nobody feels defeated. What is more, ensuring that they get some benefits, such as health insurance and a fair plan for retirement savings also represent a way to express how much you care about them. Read more about this topic in Wall Street Journal’s guide on worker-retention.
Play it cool with debtors
What every startup owner should know is that running a business requires extreme flexibility in every sense. If you make your own set of strict rules and never make a compromise, you will look professional and serious, but your financial efficacy could suffer. This is why it is wiser to be flexible and adjust to your clients’ current needs. For instance, if your long-time business client is going through a rough period, show them patience and empathy. Even if they have some debts towards your business, remind them regular, but in a kind way. Once they get back on their feet, they will be grateful and your future common work will yield even better results.
On the other hand, if a debtor becomes rude and evasive, you should apply a more assertive tactic and even enquire about debt recovery agency help to get back what belongs to you.
The art of adapting to ever-changing business conditions is the vital precondition for the survival of every startup or company. Although our guidelines are meant to save you in time of trouble, you should use them as much as possible even in the period of progress. Such a persistent approach to business will ensure that you get through financial difficulties without any serious damage.