Small businesses in tough timesDate posted: 13.04.2016 | Author: Harry Bovensmann
Small businesses in tough times: There is no doubt that 2016 to date has been a year where economic downturns, interest rate increases and doom and gloom have been the watchwords.
Although all these factors will have an impact on small businesses, they don’t necessarily mean that businesses can’t grow and move forward. After all, when a business is reduced to its most basic, it is all about managing money coming into and flowing out of the business and ensuring that you understand the market you serve.
Manage your cash flow effectively and sell what people want and the results are a thriving business – despite difficult economic conditions. The most important thing to master is your business’s cash flow. Achieving a balance between “cash-in” and “cash-out” can be especially challenging if stock has to be purchased and held before it can be sold. A good example would be the clothing industry where clothing is purchased one season ahead of actual sales activity taking place.
Contrary to popular belief, the crucial time to get marketing done is when times get tough. In the age of the internet, small companies can compete equally with much larger corporates.