Starting and running a business has always been a risky and unpredictable endeavor. Since 2020, however, conditions have gotten more uncertain than ever. How do you prepare for the unknown, especially if you don’t have massive cash reserves to draw from? Here are 7 business tips to help you navigate uncertain times.
7 Tips to Help You Navigate Uncertain Business Times
1. Invest in Digital Transformation
A digital transformation strategy needs to be tailored to your own needs. It may include redesigning your business website, collecting and analyzing actionable data, training employees on new software or processes, or upgrading technology. The key is to do your research and make changes that are relevant and not merely the latest shiny objects.
2. Seek Creative Ways to Cut Costs
During challenging times, you need to come up with innovative cost-cutting measures to streamline your operation. This may include:
- Shop around for cheaper suppliers and service providers or negotiate better terms for current ones.
- Rethink purchases that aren’t essential for operating your business or serving your customers. Examples include high-end office furniture and decor.
- Consider cutting costs on renting space by sharing an office or using a co-working space.
- If you need equipment, consider purchasing second hand items.
- Rethink your plans on services and software. You may be able to get by on a lower cost plan.
3. Automate as Many Tasks as Possible
Automating tasks such as invoicing, collections, marketing and other activities help you save valuable time while improving accuracy. Look for software or services that can help you automate as much of your business as possible.
4. Transition to Cloud Storage
If you keep your data on-site, consider switching to cloud storage. In the long run, it is more efficient and secure. It requires less work on your part, updates are automatic, and you and your customers will be able to access data in real time.
5. Make Security a Priority
Cybersecurity is becoming a crucial issue for businesses of all sizes. It’s essential to have a clear strategy as well as the latest anti-virus and anti-malware software. Make sure employees are educated about using secure passwords and recognizing potential phishing scams.
6. Offer Flexible Hours and Remote Work
Even before the pandemic, more and more businesses were implementing flexible hours and allowing employees to work remotely. Hiring independent contractors for specific tasks is another option. This reduces your need for physical space; you could consider renting a smaller space or even converting to a completely remote model.
7. Use Invoice Factoring to Boost Cash Flow and Outsource Billing & Collections
All of the above steps, and just about any business advice, require that you have a healthy cash flow. Invoice factoring allows you to collect immediate payment on invoices rather than depending on your clients’ timeline. When you factor invoices, you can enjoy steadier cash flow for payroll, inventory, marketing, or any purpose you need to maintain and grow your business.
Additionally, when a factoring company sends out your invoices and handles all aspects of accounts receivable you save time and money. Riviera Finance offers flexible invoice factoring for all industries. We can help you grow during challenging times. To learn more, contact Riviera Finance today.