Stabilize to Keep Your Business Afloat

 In Blog

“The Entrepreneur always searches for change, responds to it, and exploits it as an opportunity”

-Peter F. Drucker

In times of crisis and disruptions, committed entrepreneurs are challenged to keep their SMB’s afloat and on-course. While digesting all of the news and keeping their families safe, entrepreneurs also try to forecast the future of the environment and their businesses, and weigh continued employment of their employees. 

Most small business owners facing unprecedented hardship struggle to cope.  So, how can you prioritize to stabilize and keep your business afloat?

  1. Cash. Access to cash can be the lifeboat for your business. Therefore, the number one priority for any business is maintaining cash reserves. Even more so in a crisis. Start now by looking through your business’ budget line-by-line and cutting out unnecessary or excessive expenses.
  2. Contracts. During a crisis, it’s important to remember that collecting on your jobs is just as important as delivering your services. Evaluate your current contracts and cancellation clauses.
  3. Payments. Service and stagger payments to critical vendors to stretch your cash.  This will not only help stretch your cash reserves but also will preserve your vendor relationships and maintain your critical supply chain.
  4. Innovation. In times of turbulence, all businesses need to adapt to the emerging “new normal.” Quickly find ways your business can serve the new crisis-driven needs of customers by honing your service or product offering.
  5. Support. Consult with advisors and accountants well-versed in SMB’s during any crisis for focus and support. They can help with business contracts, collections, budgeting, and financial management quickly and cost-effectively. Do not go it alone!

If you think your resources, team, technology, tools or processes could be better configured to help you and your company thrive, communicate your ideas to your team and leadership. 

If you or your leadership needs additional support, please let KMG know. (Share Your Needs or Learn More)

KMG has specialists available to support you.

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