FIVES IMMEDIATE THINGS TO DO WHEN YOUR SMALL BUSINESS FALLS INTO CRISIS

FIVES IMMEDIATE THINGS TO DO WHEN YOUR SMALL BUSINESS FALLS INTO CRISIS

                 Crisis brings forth a lot of negative impacts not only in the business sector but also in almost all other spheres of life. These are times of great difficulties and dangerous situation. There are different types of crisis brought about by various factors such as political instability, terror attacks, disease outbreaks and pandemic, hunger strikes and many other factors. This paper aims at identifying five immediate things that small business owners can do when their businesses fall into crisis or in times of crisis.

Small businesses are vulnerable to the unstable economy since they do not have vast reserves to help them weather during these hard times like huge companies do. Decreased sales and a decline in consumer confidence often threaten small businesses with huge margins. The following five practices can help small business owners survive through hard times if only correctly implemented.

The first thing to consider is the protection of cash flow. Cash flow is the backbone of any given good small business. Small business owners must ensure that there is a continuous flow of cash even when the market falls into crisis. Through this, the survival of the business will be guaranteed (Runyan, R. C. 2006, pg.20). Business owners should, therefore, always work towards ensuring that cash flow in their business is constant.

Proper reviewing and inventory management practices are other ways of making sure small businesses survive if they fall into crisis. Small business owners should carefully analyze their inventory to see what can be done to reduce the cost. If the pricing of the orders is high, then the business owner should consider ordering cheaper items (D ummond, H., & Chell, E. r, 1994). If the business owner is requesting a lot of items, they should also consider reducing the number. The business owner needs to ensure he /she minimises on cost at any given rime

Focusing on core competencies also helps small business owners during a crisis. Most small business owners often misinterpret the word diversification. It doesn’t mean one has to add more different products to achieve diversification (Runyan, R. C.2006, p.15). Instead, they should focus on one particular product and market it properly bringing in more cash.

Small business owners should focus on developing and implementing strategies to win their competitors customers in times like this. They should force on marketing their brand to bring more consumers into the business. This will ensure constant cash flow and therefore thriving of the small business (D ummond, H., & Chell, E. r).

Finally, small business owners need to make the most of the current customers and clients. It is through the available market that products are sold. Small business owners should have a reputable relationship with their customers and clients to ascertain the continuity of their business.

Conclusion

In conclusion, the above five key steps can be of great help to small business owners during times of crisis if followed to the latter. Small business owners should be cautious on the strategies to adopt during these hard times for they determine whether there will be decline or continuity of the business.

REFERENCES

Runyan, R. C. (2006). Small business in the face of crisis: identifying barriers to recovery from a natural disaster 1. Journal of Contingencies and crisis management, 14(1), 12-26.

D ummond, H., & Chell, E. r (1994). Crisis management in a small business. Management decision.