There is no way to predict the future, especially in business. While you may be experiencing growth right now, there may come a time when profits will go down due to an unforeseen challenge.
There is no way to guarantee continued success. However, when things go south, there are ways your business can stay afloat. Here are a few tips that might help you survive a rough patch:
Find Alternatives
The first thing that you need to do is find areas in your operation where you may be spending more money than necessary. In some cases, you may have to make huge sacrifices. However, most of the time, you just have to find a budget-friendly alternative.
When faced with the option to either buy or rent the equipment you will need, think of how often you will use it and the long-term costs. In construction, for example, it may be wiser to just find an auger for hire if you primarily work on small houses that do not require deep foundations. This way, the upfront price will be easier to pay instead of emptying your wallet on one new equipment.
Buying in large amounts may also save you a bit of cash. If you can strike a deal with a partner supplier by making a big purchase right now instead of several orders throughout the year, you might get a big discount. Some suppliers may lower prices for early payments. Negotiate with your current supplier and do not be ashamed of asking for a discount.
Barter Goods and Services
If you see your business with extra capacity, partner with a related company to exchange products or services. This is not a new practice; businesses have been bartering for a while now. In fact, there are exchanges happening over the internet. There are websites where businesses can list a product or service that others might take interest in. These businesses earn “barter dollars” over time and acquire a service for no extra cost.
Bartering can be a way to push your business out of a slump. However, make sure that you have something worthwhile to offer.
Office Space Expenses
If you do not expect your situation to improve soon, it might wise to find other ways for you to conduct your business. You may look at other commercial spaces to move your operations. Even if you do not intend to move, you can use it as a leverage to negotiate better lease terms with your landlord.
There are also coworking spaces to temporarily house your employees while you wait for your profits to go up enough to enable you to move to an office. Better yet, let them work from home. Thanks to the internet, you do not have to be in the same room as everyone else to accomplish your tasks. They can still collaborate and submit their work by using applications such as Google Drive and Hangout, Skype, Trello, and Slack. By having a remote staff, you no longer have to pay for office space, utilities, and equipment.
Cutting salary and benefits or laying employees off are not the only solutions to a decline in profits. This is a problem that requires ingenuity to find solutions that will break you out of a financial slump without making huge compromises that affect the efficiency and quality of your products and services.