Savvy Finance

Small Business: What Is Your Economic Recovery Plan?

So there’s word of a potential vaccine and markets are on fever pitch to hopefully, get out of this mess and start trading like normal again. The thing is, that’s not how recessions work. They don’t just stop in a few weeks. This current recession is worse than the Great Recession of 2007. So actually, small business owners need to buckle down and really get a handle on their practices and processes if they want a fighting chance. The issue is, having a dip in the economy once again, called a ‘double-dip recession’. This occurs as businesses look at their bottom line and really see no other way to recovery, without firing people, downsizing, and postponing their growth plans. But there is always a better way!

Gain some protections

Firstly, you will want to start expanding your customer base. This has to be done online, as more and more people are now getting used to only shopping this way. So for prevention against loss and or liability lawsuits, get some business insurance like the type you see providing. They know that in this climate, making sure that you can go to sleep at night knowing that you are protected against liability cases, for such things as defective products, or having to fire people to stay above water is normal. They also protect against contracts falling through because you just don’t have the ability to serve them anymore. Things change and relationships break up, but you should not have to be taken to court for simply protecting yourself.

Wait for the orders

Many business owners think they need to rehire and hire more professionals to get their firepower in the office back again. No, you should always wait for a sign, something like getting more orders from a client that has been holding off for a few months. Can you see a rise in the market that will possibly affect your industry? Have you been phoned by a client looking to invest more? When you have these assured signs that more demand requires more supply, then you should begin to hire people again and build up your workforce. The key is to have hiring profiles and job roles ready to advertise, and having a nice smooth interview and hiring process so you can get up and running quickly.

Inventory management

So what happens you get more and more orders? You need to increase your inventory and that requires management techniques. Softwares like online inventory management systems can help you to do the same. Most likely, you have had to increase your warehouse storage as you have continued to sell but only sell online. If you are reopening brick and mortar locations again, then you need to figure out how you will deliver your inventory and who will manage it. You need to focus on areas that are recovering. Maybe one city you’re based in is growing but another isn’t. Make fast decisions on who should be getting priority.

Every business needs to have one eye on the markets, waiting for signs of recovery and another on their own action plan to ride the wave and get back in business, with a bang. What is your economic recovery plan? 

One Comment

  • cindy legg

    i think the most important point here is to expand your client base online its the best new way to do things. dont forget the other most important thing to do is increase your inventory since u will most likely be adding clients and orders for products.

%d bloggers like this: