Navigating Financial Challenges
Hi there,
According to the latest Nationwide Agency Forward survey, 70% of small business owners expect a recession in the next 6 months. Between the pandemic and inflation prices, it feels like us business owners can't catch a break. Growing a business is hard enough; growing a business through such unstable economic conditions can feel impossible.
Financial struggles force us to make difficult decisions. When facing cash flow shortages, there are some adjustments you can make to stretch your dollar. Here are some suggestions and tools to help your business survive and thrive:
- Focus on outstanding invoices. Which customers haven't paid their invoices yet? Try to work out a payment plan with them or consider financing invoices to ensure payment.
- Cut spending. To reduce your monthly expenses, take another look at your team's current list of tools and subscriptions. Are there any that you don't currently use?
- Pause hiring. If your business is struggling to make ends meet, it's a good idea to put off hiring efforts until absolutely necessary. Consider re-structuring responsibilities to fill any gaps in your current workforce.
- Automate. Cut administration expenses by using automated tools for scheduling, billing, or order management. This can save you money overall.
- Strengthen relationships. Happy customers are loyal customers. Make sure you are regularly connecting with customers to guarantee their satisfaction with your service or product.
Recessions are scary for small businesses, but they can also help you learn how to navigate financial challenges and build confidence in your resilience. Making the right decisions will set your businesses up for future success.
Best of luck,
Daniel Eke
Factor Funding Co.
