5 Tips in Boosting Your Practice during the Economic Slump
Many small business owners are nothing but ambitious when they begin their new venture. Unfortunately, poor financial planning or plain bad luck can often propel even the best businesses into the red. Has your business taken a turn for the worst? Or perhaps you’re just noticing a decrease in profits. Regardless of the reason, the economic slump is causing many business owners to revisit their financial standing to see how they’re faring. The following five cautionary steps can make or break your business.
- 1. Streamline your expenses
The first thing you should do is examine your budget and see where you can cut back. Are there fundamental expenses that can be modified or streamlined? For example, can you secure a phone deal with another company for less money? Or maybe you can stop renting a space and move into a home office? There are also a lot of other expenses that can probably be reduced or even eliminated after some serious reflection.
- 2. Write/Update your marketing and business plans
If you haven’t written one yet, shame on you. Just kidding! But it’s never too late to benefit from solid business and marketing plans. And if you have one, an annual revision is in order. Your business and marketing plans will assess your current standing and consider how to improve things this year. A clear vision and a plan to accompany it will enable you to keep on track.
- 3. Meet with employees
If you have employees, it’s good to present your business and marketing plans to them and ask for input. You may be surprised at the quality feedback you receive. Also, depending on your situation, you may need to reevaluate just how much each employee contributes to your business’s profitability. At some point you may need to let employees go in order to see your practice through a successful turnaround.
- 4. Meet with clients and/or customers
Your patrons may be privy to rumors that your business is failing. It does you no good to ignore the rumor mill. Meet with them and be honest about your business and any steps you’re taking to rectify problems. In fact, this is a good time to ask customers for suggestions. Taking this one measure may prevent them from leaving your business to look for a more stable replacement.
- 5. Invest in a Profit Expert
A Profit Expert uses information from the accounting system to analyze a business’s fiscal standing, sharing that analysis with those who can use it to make more profitable financial decisions. Do you have the expertise necessary to manage your own accounting? If not, chances are you’re missing a lot of crucial data because you’re unaware of how it be used to enhance your business. And if you do have an accountant, is he/she proactive in sharing the information generated in order to improve your profitability? If you answer ‘no’ to both of these questions, your business could experience significant improvement with the help of a Profit Expert. Call us for more information on how we can help steer your business back into the black.