Owning a small business is challenging, and doing so in the midst of an economic recession and the highest inflation rate in over 40 years is enough to put a lump in the throat. It can be done, but it will take preparation and constant action. Remember when offices were shutting down, but you were still able to remain productive? That has shown that, even though there were many sacrifices, the small businesses that survived COVID-19 were able to adjust and overcome – which will prove beneficial in a recession. Here are a few ways to adapt your business: 

Track your data 

Not everyone pays close attention to their cash flow, expenses, and invoicing. Many small business owners come to me and say, “I don’t have bookkeeping in place per se, but I know what I spend.” When I review the books, they are often surprised when we meet to discuss it. A goal is just a dream if you don’t write it down. Tracking your data is important! 

Reduce business costs

The last 2.5 years have proven that some businesses will do whatever it takes. Reducing business costs is one way to soften the impact of inflation and recession. It is no longer taboo to work from home, so if possible, do it! There is no need for rent and the associated cost of working in an office space if there are other options. Software expenses are something that should be reviewed often. Many times these are set up as recurring expenses. Expenses that you have on auto pay are often overlooked. If you don’t use it, get rid of it. If there are no alternatives, figure out a way to save on expenses at the office. There are a couple of outdated practices that can easily be achieved with modern technology. First, stop printing so much. It isn’t 2005, and unless there is a client who requires hard copies of files, there is no need. There is also no need to still be using a landline. Instead of being tied to a desk all day, switch to voice over internet protocol (VoIP), and it will save on energy costs, as well as the cost to have the actual landline. Read on about VoIP in this Forbes article. 

Make necessary changes

Nobody likes a price increase. At the very least, it is inconvenient, and maybe a customer or two will decide to look elsewhere. The thing is, if small businesses are increasing prices, it is likely that others are, too. If reducing costs doesn’t have enough of an impact, it could ease the burden. Eliminating unprofitable services is a good option. So many times we get caught up in what we’ve already put into something. However, the sunk cost cannot be the deciding factor in keeping something unprofitable going. Instead, look at your opportunity to put something else in its place. This will give you time to focus on tasks that help scale your business. 

Takeaways

Unfortunately, small businesses don’t come with a one-size-fits-all manual. Everyone is different, even if the problem is the same or similar. It takes a lot of grit and mental fortitude to run a company – no matter the size. In times like these, finding a good accountant is pertinent to your success. Thinking about the last two years, I helped many clients wade through PPP and Employee Retention credit paperwork. A good accountant listens and addresses concerns, and always makes time for the client.