In this down economy, many small business owners are left wondering: "What does this mean for me?" Despite the economic slow-down, there are several things small business owners can do to survive, and even thrive.
1. Know Your Market.
If you haven't yet researched your suppliers, or competitors before, now is the time. Talk to customers about their needs in this environment, get a sense of your suppliers' financial stability, and talk to neighboring businesses about your shared market in this economic environment.
2. Keep Stock Low.
Most consumers are spending and buying less.Try to keep your supplies and stock low so that you don't get stuck with products you can't sell. Try to only buy what you need whenever possible.
3. Maximize Marketing.
Instead of putting a freeze on marketing, think about ways to get more out of it. Promotions and specials are especially useful during hard financial periods because they provide customers with an incentive to buy. A limited-time "2-for-1" special is an easy, cost-effective promotion.
4. Reduce Your Dependency on Credit Cards
Business owners who approach this financial crisis as a short-term situation might find themselves too dependent on credit. If you are using credit cards to keep up with expenses during slow periods, focus instead on ways to reduce expenses. "Maxing out" your credit cards could negatively impact your credit score, resulting in higher interest rates.
5. Explore Alternative Financing Sources.
The current lack of access to loans makes it harder for small businesses to grow. Even though banks are less willing to provide loans, other organizations like nonprofit lenders or state-sponsored business grant programs can provide the capital you need.
To learn about business loans up to $50,000 through ACCION USA, please visit www.accionusa.org or call 1-866-245-0783.
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