For clients of Erick Conway, please see CLICK HERE to see important details related to the Strong Valley transition.
Call Our Office
(559) 384-2900 | Fresno
(619) 480-1413 | San Diego
Your Money
Your Life
Your Way
Article

Adapting Your Business to Changing Times

Adapting Your Business

When the economy fluctuates, business owners do their best to access the situation and adapt. Here are six questions that can help you take stock of your business operations, formulate new strategies, and find innovative resources to help improve the efficiency and economy of your business. Adapting can get you focused on emerging from an economic slowdown leaner and more competitive than ever.

February 29, 2024
Adapting Your Business
Important Disclosure: Content on our website and in our newsletters is for informational purposes only. The information provided may (or may not) directly apply to your situation. We recommend that readers work directly with a professional advisor when making decisions in the context of their specific situation.

When business is booming, many business owners don’t take the time to find out if their organization is running at maximum efficiency. Wasteful practices may abound, but are seldom addressed in the rush to get the product out or job done. Yet, when business slows, the time is there to take stock of business operations, formulate new strategies, and find innovative resources to help improve the efficiency and economy of your business.

Here are some issues to consider when planning to improve your company’s chances of success in the face of changing economic times:

Where can I cut costs?

This may seem like an obvious question, but formulating the right solutions without impairing your operations is seldom easy. Look for large and small ways to economize, without changing vital areas. For example, it may be possible to reduce the number of vehicles used or to conserve energy by turning off equipment when not in use. Now may be a good time to revisit some of your agreements and possibly negotiate a temporary or long-term discount. Consider taking advantage of bargains by buying in bulk or locking in prices for the future.

Are my marketing strategies still relevant?

The marketing approaches your firm used in boom times may be less effective under tighter conditions.

Clients may be more cautious about commissioning projects, and they may want greater reassurances that they are getting quality and value for their money. While it may be a struggle to increase your marketing budget, well-targeted advertising campaigns can go a long way toward bringing in new business. Stepping up your networking efforts, both in person and online, is a low-cost option for attracting new customers and staying in touch with existing clients.

Are my prices right?

Lowering your prices may be a painful but necessary measure in a declining economy. Even if you don’t reduce prices across the board, you may offer discounts or incentives to attract and retain customers. If your customers agree to adjustments in the scope of the work or types of materials used, it may be possible to lower your prices while still maintaining profit margins.

Can I trim my payroll without losing key employees?

Some companies start laying people off at the first signs of an economic slowdown. However, this can prove to be a dangerous overreaction, especially if your business ends up losing its most valuable employees. If you need to reduce payroll costs, consider viable options for doing so without letting good people go, such as offering flexible schedules, time off for training, or reduced hours for employees who want them. If necessary, consider trimming the size of retirement and health benefits, with assurances to employees that benefits will be restored as business improves. 

How can I maximize my cash flow?

When funds are tight, keeping track of cash flow becomes especially important. Check that your invoicing processes are operating efficiently, and that outstanding accounts are managed quickly. As obtaining credit becomes more difficult, meet with your accountant and your banking representative to discuss your credit lines, ways to improve your company’s credit score, and the options available in case of emergency.

Is it time to try new technologies?

Implementing new software and other information technologies, and integrating these programs into your business operations, is a complex and sometimes arduous process. A slower pace can provide your firm’s staff with the time they need to familiarize themselves with IT solutions that can help your business operate more efficiently. When better times return, your firm will continue to benefit from the productivity enhancements. Review your website, ensuring that the information is up-to-date and professionally presented. Investing time in enhancing your online presence will likely pay off during the downturn and as the economy improves.

Adapting to change is never easy. But, neither is running a business.  Rather than focusing on the recession, focus on emerging leaner and more competitive than ever.

Other content you may like

  • Carving Up Your Portfolio & Thanksgiving Pie

    Carving Up Your Portfolio & Thanksgiving Pie

    November 23, 2021
    Diversification and Asset Allocation are important financial strategies that may bring many ideas and concepts to mind that aren’t necessarily how these tools are defined in a healthy portfolio. Here are some tips on how to examine your assets and have a more balanced portfolio pie.
    Read this Article
  • Americas Changing Vision of Retirement

    America's Changing Vision of Retirement

    June 16, 2023
    The concept of retirement in America is changing.  Traditional retirement is based on the assumption that it is designed to be a time to enjoy life by not working. There are other considerations that many retirement-aged people are discovering. Have you considered your personal goals and resources to define your unique vision of retirement?
    Read this Article
  • Talking to Your Kids about Your Finances

    Talking to Your Kids about Your Finances

    September 20, 2023
    Communicating openly can help everyone prepare and plan for the future. This isn’t always as easy as it sounds. Many parents find it uncomfortable and are overwhelmed with where to start. Yet often, just discussing and thoughtful planning gives your whole family a sense of relief. Here are some tips to help you gather pertinent information and get the talking headed in the right direction.
    Read this Article
  • Was 9/11 This Generation's Pearl Harbor?

    Was 9/11 This Generation's Pearl Harbor?

    September 13, 2021
    There are chilling similarities between Pearl Harbor and 9/11 – but fundamental differences too. Which event will have a lasting effect on our future? What meaning and significance from these two catastrophic attacks will have a greater impact on America?
    Read this Article
  • The link you have selected is located on another server. The linked site contains information that has been created, published, maintained, or otherwise posted by institutions or organizations independent of this organization. We do not endorse, approve, certify, or control any linked websites, their sponsors, or any of their policies, activities, products, or services. We do not assume responsibility for the accuracy, completeness, or timeliness of the information contained therein. Visitors to any linked websites should not use or rely on the information contained therein until they have consulted with an independent financial professional. Please click “Continue to Link” to leave this website and proceed to the selected site.
    phone-handset