Document Actions
Small businesses: Plan ahead for difficult times
STILLWATER, Okla. – Recession is a word nobody wants to hear, but today it seems like a common word tossed around the news circuits. As a small business owner it is always important to plan ahead by taking the right steps in your business to protect it in case hard times hit.
Glenn Muske, Oklahoma State University Cooperative Extension Service interim associate dean, assistant director, family and consumer sciences, said many small business owners have started or should start to take the steps to protect themselves if things get tough economically.
“There are many things entrepreneurs can do to survive in tough economic times,” Muske said. “Oftentimes owners are too busy to take the time to put a plan in place and by the time they do, it may be too late.”
Muske suggests the following tips for entrepreneurs seeking to survive during the hard times.
- Pay attention to cash flow. Sales and figures are important, but it is the cash flow that will determine if the doors of your business will stay open. Be sure to calculate if there is enough cash flow to pay expenses if there is a drop in revenue.
- Make sure customers are paying. During good times accounts may slide, but in bad times you can’t afford to let these slide.
- Open up communication with all employees, especially front-line employees. Ask them for input about new ideas and how things can be improved.
- Think about how a recession will affect your customers and can you change your services to meet their needs?
- Pay attention to existing customers and remember they are your business’ biggest asset.
- Search for the opportunities during the hard times. Find the highly skilled workers who need employment and grab them for your company.
- Keep marketing your product.
- Offer deals to customers, but be sure to know your costs before you discount your prices.
- Plan ahead before anything happens. Trim costs before money is lost and diversify client base to include markets less affected by a downturn.
- Do not forget about your supply side. Do you have back-up suppliers in case your current ones fall to economic changes?
“The flip side to recession is recovery,” Muske said. “The business owner must always be looking ahead. Yet planning for recovery while still in recession is difficult if there isn’t cash or if the business isn’t in a place to make that investment. By preparing for recession, business owners will be able to take advantage of the recovery phase. Business owners should start planning now by attending workshops and preparing for recovery.”
###
Oklahoma State University, U.S. Department of Agriculture, State and Local Governments Cooperating: The Oklahoma Cooperative Extension Service offers its programs to all eligible persons regardless of race, color, national origin, religion, gender, age, disability, or status as a veteran, and is an equal opportunity employer.
Katie L. Reim
Communications Specialist
Agricultural Communications
Services
140 Agriculture North
Oklahoma State University
Stillwater, OK 74078
405-744-6792 (Phone)
405-744-5739 (Fax)
katie.reim@okstate.edu
