Maintaining financial flexibility

How to maximize your funds in economic uncertainty

When you embark on a new business endeavor, it’s hard to predict how the circumstances around you will shift and how those changes will impact your business. That’s why it’s best to set yourself up for financial agility, so that your business can weather an economic downturn.

Businesses, in general, tend to tighten up during financial slumps. Budgets decrease, organizational charts change, and suddenly everyone has so much on their plates. But there are a few steps you can take to strengthen your business during harder times without burning through your funds or scaling back dramatically.

Dive into the data

Just like you test your products for viability and success, your marketing efforts deserve a regular checkup. Survey your channels—which are bringing in the most revenue? Which are getting less traffic? If you have channels that capture customers who stick around and keep coming back, consider re-allocating funds to better support these.

Take taxes to task

Tax breaks, anyone? Take advantage of them and make sure you’re getting all the slack you deserve. Get someone in your corner to help you navigate the complexities of filing as a small business and ensure you’re not missing out on any benefits.

Take stock of your tools

Run a quick inventory of all the tools and services your business is signed up for—these expenses add up. Make sure you’re really using all these subscriptions, and if not, drop some you don’t need to be paying extra for. Your balance sheet will thank you.

Top off your team

Have a lot of tasks but not enough talent? Identify employees who can take on more responsibility, recruit strategically, and see where you can combine tasks, or work with freelancers to fill in the gaps.

Total it all

And the million dollar question is…are you actually tracking your expenses correctly? And no, not in a ton of confusing Excel tabs. Connect with an accounting professional to make sure that you have an accurate picture of your business on paper so you can really plan ahead.

Set your sales up for success

Make sure that your sales team is working efficiently. Instead of relying on cold calls to potentially irrelevant leads, work with a freelancer to first qualify leads. That way, your team can devote their time to the right audience

Learn from the rest to be the best

Take a look at how your competitors are dealing with challenges. See if there are any interesting opportunities you can take advantage of. Preferences and habits change in times of recession, so you’ll do best where you’re really needed. Doing your research will help you focus on the right areas—without wasting budget by mis-prioritizing. Re-evaluate the space you’re working in and make sure that you’re aware of changes happening around you and your business.

Zoom in on revenue

Analyze existing revenue streams to figure out just how much money it takes to fund those streams and keep your products or services running. Ask yourself the hard stuff. Is your product or service actually profitable? Can you make changes or pivot to avoid losses? If you can direct funds toward a different product or service with more potential, strategize your best course of action. Explore new markets or locations, and if you’re selling online, make sure you’re optimizing customer experience and maximizing sales.

Plan with purpose

Economic uncertainty will affect your customers—be prepared to lose some along the way and gain new ones. Make projections for different scenarios and make sure your business can survive a worst-case scenario. Identify which services, functions, and products are absolutely essential. And…ask for help! Connect with a mentor or reach out to a business consultant before you make any big moves to ensure you’re putting your money in the right place.

Be the leader you are

Sometimes all it takes to raise workplace morale is a little can-do attitude. Keep employees updated, stay transparent, and set expectations. If you have investors, inform them of your plans and course of action to weather any challenges up ahead. Sure, keeping your finances under control during hard times may be, well, hard. But conducting a thorough review of your activities, expenses, and plans and adapting to new information can set you up for success in the long term.