Less Stress with the Business Improvement Checklist
While things are looking better overall for small business recovery, there is still a significant risk to the small business owner that has weathered the storm thus far. There are still a few more bumps in the road and more companies that have to close their doors. To ensure that your business survives this last wave of obstacles, your small business improvement strategy must include a plan to adapt when they appear in your path.
Some of these obstacles are within your business’s ability to control or at least limit (such as sales and accidents), others are results of other businesses and are beyond your control EXEPT for how you allow them to affect your business.
In order to help you put together a plan to protect the downside, we have put together this checklist of the most common issues that can arise. This will get you on your way to ensuring your company can handle this last wave.
Critical Factors:
- Drop in Revenue – Identify which areas of your overhead, staff and services can be further reduced if revenue falls.
- Borrowing Costs Increase – This may be one of the most difficult to address. When possible, set up an additional line of credit in case your existing line rates increase. Also consider, if necessary, taking on a potential partner (and identify some just in case) should further lending not be available.
- Customer Bankruptcy- Customer bankruptcy, in our experience, has caused more small business failures than any other single event. You need to be reducing the length of terms offered to your customers/clients, especially those who are slower to pay now that previously. Letting the debt pile up because you “need” the business is a recipe for disaster.
- Natural Disaster – Do not skip insurance payments to help with cash flow. EVER.
- Loss of Key Staff Member – Systemize your business so that any employee’s responsibilities, especially those who are key staff, can be filled by another, and quickly.
- Regulatory Restrictions – In tough times, regulatory restrictions typically become more burdensome, not less. Take the time to follow your industry specific legislation and address the issues if it appears change is eminent.
- Increases In Costs – This can be addressed in a variety of ways: reduction of your other costs and overhead, change of supplier, etc.
- Lose Major Supplier – If you have a critical supplier, be sure to have some potential backups in the wings. While you typically know (or suspect) when a customer or client is in trouble, you will almost never know about a supplier until it is too late.
- Accident On Premises – Again, make sure your insurance is current and review your saftey policies to be sure they are current.
- Key Performance Indicators – Drop in revenue is not the only performance measure you should be monitoring. See more information on potential key performance indicators here.
- Other _____________ – Issues specific to your industry or company.
This checklist will give you the basis for protecting your business and ensuring its survival, especially in these turbulent times.
Would it help you to speak with a USCSB Business Coach to help identify specific issues for your business or for potential solutions? If so, take advantage of the free 1 hour session below.
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