Posted by Julie Henningfield - During times of economic turmoil, small businesses possess the bounce-back quality to quickly redefine strategies. And that’s exactly what you must do to stay ahead of the game in these times – react quickly and adjust strategies. Here are five tips for surviving and thriving in 2011:
- Concentrate on cash flow. Cash is certainly king, and right now, it’s all about cash flow. Think about buying used equipment or leasing equipment. In the long run, it may cost you, but to meet immediate needs, this may be the solution. Additionally, you will want to ensure that every expense is attributed to an urgent need and for an immediate benefit. For instance, you want to stay on top of your utility bills because you need electricity to conduct business. This is an obvious example but some may not be.
- Negotiate. Take time to revisit contracts. Try and haggle with your vendors, suppliers and subcontractors to minimize the amount you are paying them. Maybe there’s even a way for you to resort to good ol’ fashioned bartering. Look into ways you can trade your services or products with vendors for their products or services.
- Outsource. Invest in outsourcing as a way to satisfy your employee needs. For immediate gain and efficiency, it is cheaper in the short term to outsource your work. You’ll save on insurance, benefits and liability for minimal investment.
- Use social media. If you haven’t already, take advantage of incorporating social media into your marketing strategy. Social media is a great, inexpensive way to reach a mass audience. Build Facebook likers, Twitter followers and LinkedIn contacts. HubSpot and The Social Media Examiner are great places to learn how!
- Try something new. Try reaching your customers in a different way this year. Blogs, email blasts and newsletters are effective ways to offer your customers new information at minimal cost or no cost to your business.
Application of these tips is dependent on your specific business type and structure. Set aside some time to review the best strategy with a professional adviser and get the most out of 2011 for your small business. Remember to consult with the NASE's small business experts at NASE.org if you have any additional questions!