When I was a kid growing up in southern California, I was a frequent visitor to the various amusement parks in the area. I LOVED the roller coasters. Still do. But for whatever reason, back then, I developed a practice of closing my eyes on the ride. Closing my eyes made the ride more fun. Not knowing where I was headed was exciting. I just let it take me on an adventure.
We often refer to experiences we have our adult lives as wild rides. For me, starting my own business a little over a year ago has certainly fit the bill. If you’re a fellow small business owner, I’m sure you can relate to the metaphor.
Small businesses often face unpredictable market fluctuations, seasonal demands, economic downturns, and countless external factors that can really throw a spanner in the works. We are all constantly wondering, how do we sustain the periods of growth and shorten those super stressful down times?
Unless you’re like how I was as a kid and keep your eyes closed, we know the down times are coming, right? But we hardly ever prepare for or make moves to soften the blow or even develop strategies to mitigate them once we’re in the thick of it.
Big businesses spend lots of money trying to recession-proof. And they often come out the other end relatively unscathed. This is such a different reality for SMBs. The difference is mostly that while we all know that down turns happen, big companies prepare for them.
So how can we as small business owners better buckle in and come out of an economic downturn still willing to keep our train on the tracks?
We need to make the right moves while we have the options and while customers are still spending money.
Easier said than done? No doubt! But here are some ideas that can help you enjoy the roller coaster ride a little bit more.
Mind Your Budget
At quick glance you might be thinking, I need or will need everything I currently pay for. From staff and office equipment to paid advertising and supplier costs. You really must look hard at this and figure out what can be revisited and scaled back when times get tough.
Maybe you don’t need as big of a space that you currently have? If you’re a service-based business, perhaps you don’t need an office at all. Embracing remote work options for some staff could be a way to drastically reduce your overhead.
Paying hundreds or thousands of dollars on paid advertising? Start building a more organic pipeline by utilizing your website, social media and other media that allow you to engage with potential customers. This isn’t easy and takes practice but if you can do this before your business is in a slump, it will go a long way to help you through the harder times.
Still printing and filing? Try using cloud services to store, file and share information. This can reduce your footprint (requiring smaller space) and can cut down on the costs of buying all that pricey ink and toner.
Depending on your business, even renegotiating subscriptions, or contracts with suppliers to pay-as-you-go accounts can be an option.
Streamline Your Workflow
Resilience is the number one asset we small business owners have. But while we are resilient, we are sometimes hesitant to give up any control over how our business operates. This could be super detrimental and put you in a world of hurt when business slows.
There are so many tools out there that can help you streamline how you manage your business. It’s time to start trusting that there are other, very likely more efficient ways, to do things.
By eliminating unnecessary tasks, minimizing bottlenecks, and optimizing processes, you can ensure that your small business is agile enough to handle the unpredictable ebbs and flows. Here are a few steps to streamline your workflow:
Identify and prioritize essential tasks: Let’s face it, there will never be enough hours in the day to do all the things. Start by identifying the core activities that directly contribute to your business's growth and profitability. Focus your time and resources on these tasks while considering outsourcing or automating non-essential activities.
Automate repetitive tasks: The epitome of “working smarter, not harder.” Utilize productivity tools, project management software, and customer relationship management systems to streamline administrative tasks and improve efficiency.
Standardize processes: Develop standardized procedures and workflows for routine tasks, ensuring that your team members can follow consistent steps. This reduces errors, saves time, and enhances productivity, enabling you to allocate resources more effectively.
But beware. New tools are coming out every day. Find one that works for your business and stick with it. Chopping and changing on a regular basis eliminates whatever efficiency you’ve created.
Outsourcing for Resilience
Outsourcing has emerged as a strategic solution for small businesses seeking to navigate through the ebbs and flows. By delegating specific tasks to external experts, you can access specialized skills and resources while focusing on what your business actually does. Here's how outsourcing can help your business:
Cost savings: Outsourcing certain tasks allows you to access expertise without the overhead costs associated with hiring full-time employees. You can allocate your budget more efficiently by paying only for the services you require, reducing fixed costs during lean times.
Flexibility and scalability: Outsourcing offers the flexibility to scale your business up or down quickly in response to market fluctuations. During peak seasons or growth periods, you can expand your outsourced team to handle increased workloads. Conversely, during lean times, you can scale back your outsourced services to manage costs.
Access to specialized skills:
Small businesses often face resource constraints, making it challenging to hire individuals with specialized skills. By outsourcing tasks to experts in specific fields, you can tap into their knowledge and experience, benefiting from their expertise without the need for extensive training or recruitment efforts.
Buckle Up
Fluctuation in these little business adventures we set ourselves on is part of the journey. But there are strategies that can help us navigate the ups and downs a little more gracefully. By diligently tracking our budget, we gain valuable insights into our financial health and can make informed decisions to help us find balance during the ebbs and flows. Streamlining our workflow ensures that we work smarter, not harder, maximizing efficiency and productivity. And let's not forget the power of outsourcing, which allows us to tap into specialized skills and resources, helping us stay agile and adaptable.
These are just three of many practices that can help us navigate through building sustainable business success. Follow my blog for more practical tips, advice, and insights that I’m learning while on my own small business roller coaster!
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