Small businesses are at the forefront of ever-changing economic times. Yes, global events, turbulent markets, and financial pressures make running a successful small business a challenge; however, weathering the storm can be mighty rewarding - those who manage to get through a crisis successfully will have an easier time growing afterward.Although nobody can predict or control when a recession strikes, you can control what you do to prepare, including getting savvier about cash flow, debt, and business operations.With current inflation levels hovering around 8% and the Federal Reserve Bank raising rates, we are seeing more layoffs and productivity downturns affecting not only the large tech firms but slowly becoming a reality for many small businesses. The after-effects of supply chain management issues caused by the pandemic highlight the need for careful decision-making from small business owners.|Small businesses are at the forefront of ever-changing economic times. Yes, global events, turbulent markets, and financial pressures make running a successful small business a challenge; however, weathering the storm can be mighty rewarding - those who manage to get through a crisis successfully will have an easier time growing afterward.Although nobody can predict or control when a recession strikes, you can control what you do to prepare, including getting savvier about cash flow, debt, and business operations.With current inflation levels hovering around 8% and the Federal Reserve Bank raising rates, we are seeing more layoffs and productivity downturns affecting not only the large tech firms but slowly becoming a reality for many small businesses. The after-effects of supply chain management issues caused by the pandemic highlight the need for careful decision-making from small business owners.
It’s up to interpretation and understanding of a recession. The U.S. economy experienced a decline in the first and second quarters of 2022. Early Q3 reports show the economy is growing, so there might not be a looming recession. These financial reports and rising inflation rates can cause confusion and flurry for small business owners and policymakers.We know that it’s difficult not to get caught up in what’s happening in the news, but you should focus on your business and understand the fundamentals of recessions and inflation and how you can better prepare. For the average small business owner, mindful and strategic preparation can progress your business in every economic condition. Here are 6 Tips to Recession Proof Your Business.|
To maintain stability in these uncertain times, working capital becomes increasingly important, as it is the cheapest source of cash and the smartest option before a recession hits.Having cash resources and other financing options to fall back on is a great way to increase the financial health of your business. However, the uncertain economic times may see nervous banks stiffening their loan requirements. Alternative lenders, such as ByzFunder, are expanding online lending options, making it easier for small business owners to acquire the capital needed to maintain stability.|
We can’t say this enough; cash flow is king! Managing your business’s cash flow is crucial during times of uncertainty. Many business stats indicate that small businesses fail because of their diminishing cash flow and inability to reserve and control it properly.One way to protect your cash flow is to issue invoices and review your receivables on time. Resolve any cash flow issues before it becomes a grander problem.|