SURVIVE A BUSINESS SLUMP
Slumps in Business are Common and Even Natural Occurrences. In Order to Survive, it's Best to Have a Strategy.
By Jeanie Swisher
It happens in every business. At times, the economy takes a down turn and all you can do is hang on for the ride. But the survival of your business depends on how well you ride the wave.
There is nothing worse than laying awake at night worrying about how you're going to pay the bills. At times like this, our mind has a way of tormenting us with every bad decision we have ever made. We toss and turn and punch the pillow hoping to get back to sleep to no avail. And the question that runs through our mind becomes, "Is this the end of the road for the business?"
Going into business has a high price at a time like that. It can look pretty good to work for a big company or the government who will "take care of you" and hand you a paycheck every week. And there are solid reasons why businesses fail. But there are also some things you can do to give yourself a good shot at surviving the slump.
EVALUATE THE SLUMP
Is this a temporary or long-term slump? Many businesses have some fairly predictable seasonal changes in income. There may be certain months of the year that your customers are away on vacation or they are just not in need of your products and services. And there are years that the income is just not up to snuff. Daily we see large corporations laying off employees or cutting a production line or two. A slump can happen in any business. But making a forecast about the length of time it may last is a valuable tool that will help you survive the slump in your business.
STAY FOCUSED
When the bills are building up and there is little money to pay them, it's easy to feel overwhelmed. Everyone in business needs to have the "big picture" of where the business stands at all times. But prioritizing and focusing on the next bill that's due can greatly calm the nerves. "Eat an elephant one bite at a time," concentrating on the next bill on top of the pile. That will make the stress more manageable.
TIGHTEN YOUR BELT
Have you ever noticed how we all think that the other person has tons of money in the bank? When my customers don't pay me, then I don't have money to pay someone else. If I don't pay my bills, my suppliers don't have money to pay their workers.
It's a good thing to put away money for emergencies, but there are times when even the extra money gets drained. There may have been an emergency, an order that went sour, or a raise in rent and insurance. It's a continual juggle to smoothly manage the income and the outgo to your accounts. A slump is when there is more going out than coming in.
USING CREDIT CARDS
At times, using credit cards is unavoidable. There may be a large purchase for the business that needs to have the payments stretched out over a long period of time. For most people the intent is to pay the bill when it comes. And it's pretty easy to let it slide now and then and just pay the minimum balance due. At times, the minimum is the only option because of a business slump.
BORROWING MONEY
The thing about borrowing money is that the money has to be paid back. Whether it's a bank loan or borrowing out of your personal account, getting it paid back takes supreme effort and discipline. But while you're in the throes of a slump, it's not the time to be taking on more expenses at this time. Just get through the slump.
WORRY ACCOMPLISHES NOTHING
We all do it...we lay awake in the wee hours of the night worrying about paying the bills. We toss and turn and allow the night demons to steal our needed rest and then we feel even lousier the next day. When it gets really bad, the best thing to do is to get out of bed. Get a glass of milk or a bowl of cereal, sit down at the kitchen table, and have something to eat. Then grab a tablet and pen and make a list of the things that are robbing you of sleep. Once you can look at the problems on a sheet of paper, they'll seem less overwhelming and more manageable.
ONLINE BANKING
One of the things I like most about being able to access my bank accounts online is that I can do it 24 hours a day. When I'm feeling troubled in the night, I can crank up the Internet and take a look at which checks have cleared the bank and which deposits still have to be entered. Coupled with my priority list, I can stay updated as to where I stand with the business at any time of the day. This helps my peace of mind.
Getting through a slump isn't easy. There's no magic to make it go away until you reach the other side. At times, you'll feel as if it will never end. It's hard work to hang in there and not give up. But one of the most valuable lessons that I've learned is that in looking back through my life, I didn't quit when I believed in what I was doing. At times, my prayer has been, "Lord, just help me through one more day."
Live your life one day at a time. If I can get through a slump that way, so can you.
Jeanie Swisher is the owner of Spectrum Publishers and has 30 years experience in independent business. RUSH $5.00 for Jeanie's latest tips on how to be a successful business owner-- "Business Tips 2001." With more than 30 years of experience, Swisher will hand you gut level tips for owning your own successful business. Learn how to swim with the sharks. Order the tips at:
Business Tips SPECTRUM PUBLISHERS 34 South High Street #1200 West Chester, PA 19382
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