Weathering Slow Seasons: Strategies to Keep Your Business Moving Forward
| Posted in Bank Blogs
Every business owner knows it: running your own company comes with highs and lows, upturns and downturns, and busy and slow seasons.
The latter isn’t always easy, especially since expenses don’t seem to have slow seasons. Even the most seasoned business owner can feel a little nervous when business slows and cash flow, the lifeblood of every company, starts to tighten.
But it’s not all bad. If managed well and planned for, slower periods can actually become powerful opportunities to work on your business and strengthen it for the future.
Here are some strategies to help you weather slow times and put your business in a strong position to come out of them:
- Plan ahead. You don’t have to be a fortune teller to predict when slow seasons will come. You may run a seasonal business, such as a landscaping business that slows in the winter or an accounting firm that peaks during tax season and tapers off afterward. The advantage of predictability is preparation. Setting aside money during busy periods can help you get through slower ones.
- Know your cash flow. Cash flow is key to business success. During slower seasons, it’s critical to understand your fixed expenses, variable costs, and projected income so there are no surprises. Maintaining cash reserves or having access to a line of credit as a safety net can provide peace of mind.
- Trim your expenses. This is finance 101. If you’re spending more than you’re bringing in, it’s time to make adjustments. Before a slow season hits, review your expenses and identify areas where you can cut back or temporarily scale down. Even small cuts will give you breathing room when cash flow is tight.
- Use your time wisely. When business slows, it’s tempting to ease up, but that can create challenges later when things pick back up. Stick to a consistent schedule and use the extra time to focus on growing and improving your business. This is an ideal time to review your business strategy, update marketing plans, improve processes, and do all those projects you’ve been putting off.
- Take a break. Owning a business is rarely a 9-to-5 job, especially during peak seasons. Time off can be hard to come by. A slower period may give you the chance to step back, unplug, and recharge. Even a short break can help you gain a fresh perspective and recharge your batteries.
- Connect with your customers and employees. Your customers and employees are central to your success. Use the time you have during slow periods to nurture those relationships. Check in with customers, ask for feedback, strengthen loyalty, and invest in your team.
We get it, slow periods can be uncomfortable. They don’t, however, have to hurt your business. By planning and staying focused, you can use the extra time you have to make your business even stronger, so there’s no stopping you when sales start rolling in again.