“Recovering from Financial Hardship”
Going through trials and tribulations is common when managing a business. The biggest threat to most small businesses is enduring financial hardship. A bad month can lead to many months or even years of recovery. This idea can apply to life outside of work as well; When COVID flooded the world, many lost their jobs, which resulted in families needing to access savings or emergency funds. The first goal certainly is to simply survive the hardship period. The next goal involves how you can recover and proceed forward.
SmallBiz-Resources compiled a set of ideas to facilitate the recovery process after a hardship. The article argues to first, critically review your financial situation. Regardless of what was lost, recognize your true revenue, income, spending, etc. Just as an addict must first admit the problem before recovery, so too does the business owner need to honestly admit the depth of the financial situation.
Considering spending cuts is obviously critical but often times business owners adopt a “no spend” across the board approach which can hamstring the business recovery. Seek opportunities for targeted spend on items that can further save money or generate revenue. Technology and software often fall into this category of recovery opportunity spending. Investing in door project management software can produce high return on investment. New software can enable you to do more with less and also bid on more complex jobs.
If you have suffered a financial loss, creating a new business plan will allow for improvement from the past, while also ensuring that you are better prepared if an issue arises again in the future. Determining what worked in the past and eliminating aspects that decreased productivity, will allow for greater long-term success. Take a step back, maybe 30,000 feet back, and look at your business from an unbiased objective perspective. Maybe a new strategy and new business plan is needed.
Recovering and maintaining success and productivity within your door, frame and hardware business will demand that precautions are taken in order to prevent failure and hardship. Being proactive and highly aware of your company’s financial situation, cutting-down on unnecessary spending and reemphasizing a business plan will ensure you are prepared correctly.
Ian Oxman, Owner Software for Hardware LLC, is based in Atlanta, GA. You can reach Ian at Ian@softwareforhardware.com