Helping your small business to survive the economic slowdown is a matter of taking inventory, cutting fat, and partnering up with other small businesses that can help you drive traffic. Did you notice that I called our current economic state "slow" and not "in crisis"? If you are a small business owner wanting to weather this economic storm the first thing you must do is switch your mindset. Look at your businesses with a new set of glasses to come up with creative, innovative ways to succeed while others are failing.
Look at your business as a whole. Start with the largest steps in the process and work down to the smallest, most basic of daily operations. Write them down. You want to visualize exactly what is happening at your business. From ordering and receiving supplies to changing the paper in your point-of-sale terminal. Make a flow diagram if this helps you to see how operations flow on a daily basis. Include who is involved in these processes, and their job title.
If you have inventory, such as in a retail store, account for every single product in your store or warehouse. Know exactly how many pieces you have of each product, the cost of the product, and the amount of profit received once the item is sold.
Once you have a good solid idea of your businesses processes and the inventory involved, you are now better equipped to cut out the fat, or in other words, the unnecessary costs that are being paid out. Business owners are usually so engrossed with the "day to day" operations, that they may overlook the most obvious cost cutters. Having a flow diagram and inventory sheet can really open one's eyes to wasteful spending. Have a spouse or close friend take a look at operations to give an "outside" opinion on areas to save money.
Look at your business as a whole. Start with the largest steps in the process and work down to the smallest, most basic of daily operations. Write them down. You want to visualize exactly what is happening at your business. From ordering and receiving supplies to changing the paper in your point-of-sale terminal. Make a flow diagram if this helps you to see how operations flow on a daily basis. Include who is involved in these processes, and their job title.
If you have inventory, such as in a retail store, account for every single product in your store or warehouse. Know exactly how many pieces you have of each product, the cost of the product, and the amount of profit received once the item is sold.
Once you have a good solid idea of your businesses processes and the inventory involved, you are now better equipped to cut out the fat, or in other words, the unnecessary costs that are being paid out. Business owners are usually so engrossed with the "day to day" operations, that they may overlook the most obvious cost cutters. Having a flow diagram and inventory sheet can really open one's eyes to wasteful spending. Have a spouse or close friend take a look at operations to give an "outside" opinion on areas to save money.
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