15 Ways Small Businesses Can Survive
It is not simply that many firms have had to raise pay in recent months that the labor scarcity is having a negative impact on their bottom line.
The small business referral network Alignable conducted a poll in September that found that almost 23% of small firms had restricted their operation hours in order to compensate for a smaller staff. Furthermore, working fewer hours results in lower earnings.
In the short term, losing your job may not be a big deal; however, losing your job for an extended period of time, especially one that would affect your ability to purchase during the vital Christmas shopping season, may be too much to bear. It is possible for you to choose from the following alternatives:
1. Make use of technological advancements.
The procurement of robots is not required to enhance the level of automation in your organization. It is possible to reduce your labor costs while increasing your productivity by using something as basic as QR code menus. According to the National Restaurant Association, half of restaurants have used QR codes since the outbreak began to assist them in dealing with a reduction in waitstaff.
Upgrades in technology that enable businesses to compensate for a reduced staff, such as robots that can do physical chores (such as food preparation) and automation services, may also be worthwhile considerations for their operations (which can help with customer service, among other things). An August poll conducted by Verizon found that 30 percent of small firms had deployed new technologies to compensate for labor shortages, with the percentage expected to climb in the near future.
2. Reduce your expenditures as much as you can.
Labor expenses have decreased as a result of employees working fewer hours, while fixed expenditures, such as rent or a mortgage, have become less bendable as a result of lower employee wages. To that end, make an effort to reduce their use. Try to have your mortgage or underlying debt converted into loans with reduced interest rates and terms. Similarly, if you haven’t already done so during the worst of the epidemic, you may renegotiate leases.
The National Restaurant Association’s Mike Whatley, vice president for state relations and grassroots advocacy, recently told Inc. that restaurants and stores may reduce menu and inventory options by determining what is most beneficial for their businesses and eliminating the rest. Maintaining adequate inventory levels is critical to meeting customer demand; but, selecting more strategic inventory levels may allow you to save expenses.
3: Investigate potential new company ventures
In contrast to the fact that there is a limit to the number of burgers you can sell—especially if you have fewer employees—there is almost no limit to the number of e-cookbooks you can sell. Consider the following examples of creative, out-of-the-box approaches to meeting clients where they are: Increase attendance at in-person fitness classes by offering a virtual option, selling packaged food such as sauces and meal prep kits that restaurant patrons can take home to increase revenue, or even installing a vending machine where shoppers can pick up small novelties without having to go through the checkout line, as pastry chef Cheryl Wakerhauser did early on in Covid.
4.Train your mind, body, and spirit.
It’s worth experimenting with other routes if you’re having trouble finding employees along your usual routes. If you’re willing to teach new recruits, anything from visiting job fairs to hiring right out of high school—or even those who have been incarcerated—could provide excellent results. Another excellent resource is the Mom Project. If you don’t need full-time assistance, a platform dedicated to assisting new mothers in finding employment may be an excellent alternative. It is likely that the ladies who make use of the service are flexible in their schedules, and they will be prepared to provide a hand whenever it is required.
5. Keep an eye on your cash flow at all times.
Concentrate on the areas of your business where cash flow is a bottleneck, such as inventory, equipment purchases, and accounts receivable. Thus, you will be able to increase your present cash flow and forecast a future deficiency……………………………………
6. Consolidate or rearrange your financial obligations.
Bring all of your debt together, including loans, credit cards, and any other lines of credit. Negotiate with creditors to extend the time frame for making payments.
7. Look for methods to reduce expenses.
You may, for example, reduce the amount of outdated and obsolete merchandise you have on hand and save money on paper and postage by having payroll deposited directly into your account.
8. Make your billing system more efficient.
You must keep track of your consumer receivables at all times. There are various accounting software applications available on the market, such as QuickBooks, that may assist you in keeping track of who has paid what and can send you automated notifications when payments are past due.
9. Make your credit policy more stringent.
Establish more stringent criteria and restrictions for obtaining credit. A down payment at the time of purchase, a shorter payment term, and selectively extending credit to certain consumers are all options you have.
10. Incorporate forceful debt collecting strategies within your collection strategy.
You must know when to make phone calls, when to send written requests for payment and statements, and when it is appropriate to turn the matter over to a collection agency for collection.
11. Postpone any plans for future growth or development.
It is preferable to remain with what you are currently excellent at and simply strive to improve upon what you have.
12. Enter into negotiations with your vendors.
You might attempt to negotiate a lower price for your suppliers by bartering with them. The longer your connection with any of your suppliers, the more likely it is that you will be able to get better credit terms.
13. Outsource specific duties or responsibilities to a third party.
Small business owners may take use of a growing pool of skilled freelance employees for any task or project that would otherwise detract from the operations of their company. This is a more affordable alternative to employing people, yet you may expect to get high-quality work.
14. Put a strong emphasis on client satisfaction.
Maintaining the client base that you have established via follow-through, excellent customer service, and quality control are all important.
15. Be familiar with your funding choices.
Know where to receive money far in advance of when you need it. Some financing solutions, such as invoice factoring or merchant/business cash advances, are predicated on future sales and feature flexible payback terms. Concentrate on developing connections with present lenders, and don’t forget about relatives and friends who may be able to provide a hand if you find yourself in a tight spot.
