5 Strategic Tips to Keep your Company Afloat
As if dealing with the devastating effects of a lingering pandemic wasn’t enough, we are now juggling a 40-year high inflation that has left us with a sense of anxiety and uncertainty about the future.
Gas, housing and consumer product prices continue to skyrocket, as Americans keep seeking for new ways to streamline their spending, bracing for the long-term effects of not having enough to cover basic living expenses.
The same goes for the owners and managers of small businesses, who are trying to navigate countless economic challenges and stay afloat within this historically volatile time.
We had to chance to chat with UOF’s CEO Jose Trezza, an experienced business owner in South Florida who is also a seasoned economist and a member of the Goldman Sachs 10,000 Small Business Program.
As head of a leading workspace design retail and service company, Trezza has dwelled with the ups and downs of being a business owner within a niche market and has garnered a deep understanding of what it takes for an organization to remain resilient in times of hardship.
In an effort to help entrepreneurs and first-time owners, he offers these 5 tips to get ahead of the current inflationary trend:
1. Don’t Run Out of Cash!
Get your war chest ready. Be in control of your cash. Create systems that help you monitor sales and expenses on a daily and weekly basis, so you act immediately to avoid a negative cash flow.
Negotiate better terms with landlords, banks and vendors. Raise equity or debt, even if it is expensive because running out of cash is like running out of oxygen and odds are, you probably won’t get a second chance.
A cash problem is a business killer. Avoid it like the Covid plague.
2. Build Additional Revenue Streams
Create ways to generate additional revenue for your business. Offer new products and services and open up your operation to reach other market verticals to ensure more potential earnings.
3. Earn More from Current Customers
Offer your customers a reason to stay: make longer-term deals, promote subscription services and increase automation. Entice repeat-business from your consumer base by selling improved products and services.
4. Improve Profitability
Stay profitable by making cuts where possible and improve your ROI (Return On Investment). In trying times, less is more. Make sure you aren’t overspending in non-essential services and try to generate more sales that don’t significantly increase your operating costs.
5. Eliminate Excess
Wasted time and resources will hurt your business. Unprofitable customers and draggy operations will subtly eat away at your profits and exhaust your system. Rethink your specific needs as far as consumers, workers and processes that may be slowing down your growth.
Written by Kika Pérez for UOF Editorial
