Commercial Funding Partners may be in only its tenth year but know this: the members of our management team have been around long enough to survive and thrive during at least one recession and in some cases two. We have some advice to offer as you navigate what may, for you, be uncharted waters.
Should you panic? No, because panicking never helps anyone.
Should you prepare, just in case? Because even if a recession doesn’t happen, you’ll have taken steps that can only help your company’s bottom line.
Here are some of the lessons we’ve learned, and from which you might benefit, over the years:
1. Focus on the things your company does well. Take a close look at your company’s offerings and analyze the strengths. Focus on those areas. We’re not suggesting an all-your-eggs-in-one-basket approach, but rather a willingness to focus on and expand the areas that are doing well. Are Widgets A, B and C selling well in Industries X, Y and Z? Where else might they do well?
This is not the time to adopt a let’s-try-everything-and-hope-something-works approach. Save tossing pasta against the wall to see if it sticks for Italian night at home.
2. Keep close tabs on revenue and expenses. This is the time to focus on increasing your profits, while also striving to spend less and save more. Do you have an emergency fund? If not, is there money that you can set aside now, in case the need arises? Is it enough to cover your expenses for at least two months, and maybe longer? Are your customers paying on time? If not, find ways to address that now.
3. Does your company have slow-moving inventory? If so, is it perhaps time to sell it off? And what led to the excess inventory in the first place? Were you overly optimistic about a product’s potential success? Don’t be afraid to ask tough questions now as it may help you avoid similarly unfortunate situations later.
4. Can you make money off of your assets? Do you have office or warehouse space to sublet, or equipment to rent out?
5. Do not under any circumstances make the mistake of not communicating to customers that you’re open for business. If you need to trim expenditures, then start looking for ways to bridge the gap. Is there a social media campaign that you could initiate to help your business stay front and center in customers’ minds?
6. And, while we’re on the topic of customers, never forget that they are the reason that you have gotten to where you are now. Find ways to reassure them that you’ll be there for them. Find ways to thank them for their continued support. And ask them what steps you can take to make them even happier with the service you provide.
7. Look into financing options to help you weather the storm. No one should ever feel like they’ve failed just because they need to ask someone for money. Never rely on just one company for advice though. As with any medical issue requiring emergency treatment, a second opinion will only help.
We’re not sure there’s a way to prove this, but we suspect that there’s not a single successful business today that hasn’t faced some sort of obstacle along the way.
Know this: You’re not alone, and you’re in good hands. We welcome the opportunity to discuss your business—past, present and future—and all the myriad ways that we can help. (801) 545-4000