Last year was very difficult for many smaller businesses, especially at the end of the year. And the economy did not improve just because the calendar changed. While the economy is not the only factor in the success of your business, it is a factor.
There are predictions about an impending recession. It’s important to remember that recessions don’t affect every business the same way. And there are several business trends that can help you remain profitable if not improve your profitability regardless of the economy.
Use the Right Technology
Some companies seem to have all the trendiest technology in use, while others use minimal technology. The key is to use the right technology for your needs. Technology should make your life easier and make it easier to achieve your goals.
Don’t stress over the latest trends in technology, like artificial intelligence and blockchain. It’s a good idea to understand these trends and consider how they might impact your company. But you don’t have to embrace any of them if they don’t align with your needs.
Choose and use technology with a strategic intention, and don’t just go along with what your friends or colleagues are using. They may have different goals than you.
Engage Employees in Decisions Affecting Them
The job market has been extremely strong, though that may be changing and it could change more if we head into a recession. People are reporting fatigue and burnout and some employees are rethinking their attitude about work. Retaining your top talent can present a financial challenge, but not all retention issues are about money. Engaging employees in the decision-making process may prevent an exodus. It may come down to how well you understand their concerns and issues.
For instance, if you’re trying to navigate the waters of in-person versus hybrid versus remote work, get a handle on why your staff may be reluctant to return to the office. Involve them in the planning process and look for ways to accommodate their needs that work for you and them. And, if you find your office space is larger than you need, reach out to us. We may be able to help you save money on that lease.
Get a Credit Line Before You Need It
Applying for a business credit card or line of credit may seem like the last thing you should do when interest rates are high and financial issues may arise. But as time moves ahead, your financial picture may change. If it changes for the worse, you may not be able to qualify for as good of a rate – if you can qualify at all.
Again, we’re not saying you should use a credit card or loan to stay afloat in the longer term. That’s never a good idea. But for shorter term cash flow management, this may be the best move for protecting your profitability.
Difficult economic times call for creative financial strategies. At Hundley Advisors, we take pride in our ability to develop strategies for growing your business that are unique and specific to your circumstances. That’s why we are so effective at helping your company stay as profitable as possible.
Would you like more information about how we do this? Let’s have a 15-minute call. You can schedule a convenient time here.