The most important thing is to really evaluate how money is being sent and how the business is being run. When times are tough you need to be sure you are not cutting the wrong things. Look at how you are spending money personally as well. Following are some of the areas to evaluate.
Consider cutting – As difficult as it may seem, if the business closes all of these and more may have to be cut anyway. See what you can do now to keep that from happening:
Personal – extra cable channels, eating out, memberships, lessons, name brand and more expensive organic foods, entertainment, unaccounted for “spending money”, etc.
Business – Of course this depends on what your business is. Evaluate the following: magazines, brand name supplies, donations, see if you can tighten up staff efficiency and therefore need less staff time.
- For example, we used a local charity to prepare all of our large mailings. They were efficient and timely. They cost a lot less and we liked the idea that the money went to charity.
- In the summer you may be able to hire high school or college students to do filing, and other simple tasks, at minimum wage.
Some of the areas to consider keeping:
Personal: movie rental (a less expensive form of entertainment), going to the library, low-no cost outdoor activities (picnic, public beach, etc)
Business: Essential staff, efficient marketing programs, an appropriate amount of product on hand, pay staff and other services on time.
IMPORTANT: If you are having trouble keeping the business profitable, you need to take a critical look at how you are running it. What you have been doing in the past will need to change. If you can’t figure it out yourself, spend the money to get the proper guidance. Also, contact your local Chamber of Commerce to see what assistance they have available.