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Downturns: What to Do During Tough Economic Times
Covid, gas prices, inflation, here’s how to fight back
One disadvantage of small towns is, when business has a national downturn, it often hits small towns hardest.
Current gas prices, inflation, supply chain disruptions being a prime example. Or a stronger competitor opens near you.
Because of the smaller population base a rise in prices anywhere may cause customers to re-think purchases or put them off until later.
How you react depends on the seriousness of the situation. Sometimes you can just hang in and ride out the storm.
If the situation is really serious, then you may have to resort to drastic action. Unfortunately, the most drastic action is laying off some employees.
Not a pleasant experience. There’s nothing worse than losing a good employee who did nothing to deserve it.
Imagine you’re swimming and suddenly a strong current start pulling you away from shore. If it carries you too far you may not be able to get back.
You know how to swim — slow, methodical strokes — out of the current and then back to shore.
But suddenly panic sets in. You start to valiantly pound and kick against the current. You begin to weaken.
The harder you work the worse it gets, and you’re swept away.
The same thing can happen in your business.
The first step is calming down and getting your business under control.
It isn’t so much that you must get back to shore (economic safety) as much as keeping shore in site and not going out any further. Poor organization increases your chances of failure.
Here Are Some Things to Do When Times Are Tough
- If you don’t already have a good accounting system in place, make an appointment with an accountant and make sure you know where you are financially.
- Make a complete analysis of the current strengths and weaknesses of your business. What strengths can you capitalize on, what weaknesses can you eliminate?
- You may need to consider an attorney to…
