There is a lot going on these days which can cause worry for small business owners – economic turbulence, natural disasters, cyber crime, changing regulations, and the list goes on. It is easy to become paralyzed with the myriad of challenges, many of which we have little or no control over. In times like this, a good strategy is to focus your energy inward on the things you can control in your business. When you do, you will be able to influence how your business can navigate these challenges successfully.
When dealing with economic uncertainty, it is good to go back to the basics of cash flow and customer focus. Over time, businesses can get lax on how they are using cash. All long term and short term expenses should be reviewed with nothing off limits. Inventory balances should also be evaluated for excess and obsolescence. Involve your employees in the effort. They may see things that you don’t, and they’ll have buy into the changes.
Get laser focused on your customer needs. In times of uncertainty, customers’ buying habits can change. They make more of their buying decisions based on price. Is there a way to lower your price without undermining your profitability? Can you package your products or services differently that would suggest a better value proposition to your customer? Mine your sales data and engage with your customers to uncover changes in buying habits.
When considering disaster scenarios, successful businesses must be resilient. The first step of resiliency is preparation. Disasters come in all forms: cyber crime, natural disasters, loss of major customers/suppliers, major construction out your front door and so on. Once you have identified the risks, you can take steps to protect your business. There are tons of resources on disaster recovery and cyber security that can provide guidance. By putting these things in place, you will rest better knowing you have a plan to deal with it. Here are some great resources to assist you:
- Disaster planning and business preparedness from FEMA: https://www.ready.gov/business
- South Dakota Emergency Management: https://dps.sd.gov/emergency-services/emergency-management
- SBA’s Cybersecurity content: https://www.sba.gov/business-guide/manage-your-business/strengthen-your-cybersecurity
- CyberSafe SD program at DSU: https://dsu.edu/cyber-safe-sd/
So tune out the outside noise and focus on your internal operations to increase your ability to navigate challenges successfully.
"A pessimist is one who makes difficulties of his opportunities, and an optimist is one who makes opportunities of his difficulties.” Harry S. Truman
Kelly Weaver is the Regional Director of the Small Business Development Center in Aberdeen which offers free, confidential business consulting to start up and existing businesses. She can be reached at (605) 698-7654 x144 or kelly@growsd.org. The Center is hosted by GROW South Dakota.
