With the economic challenges of the past 18 months and the start-and-stop impact of the pandemic, it’s important for small business owners like yourself to have a trusted advisor to help you thrive in today’s “new normal.”
Today’s business environment can be, at best, described as uncertain. After being hit hard by the pandemic, small businesses need direction to understand how to better adapt to change. With the threat of COVID-19 still lingering, what should you focus on to stay viable and grow your business?
Build a roadmap
First and foremost, small businesses need to take time to think ahead! The most important way to stay prepared for what could come next is to do situational planning. This means identifying several options around how you’d be able to shift or change business operations in the face of uncertain conditions. This type of planning requires small business owners to transition from “survival mode” to a more forward-looking, strategic approach. Using modern analytics, businesses can foresee opportunities and respond quickly to risks that may otherwise be unexpected.
Improve your cash flow
Your small business also must become more financially sound with access to working capital. When the pandemic hit, many small businesses simply didn’t have adequate cash-on-hand to meet their expenses, forcing so many to lay off workers or close their doors. Effective cash flow management can help you keep inflows of cash timely and predictable, while also reducing excess debt. It’ll also help you identify areas of risk, so you can plan accordingly.
Embrace technology
Lastly, it’s essential that you make investments in technology. Businesses with the most up-to-date digital tools and services were also the ones that were able to adapt when the pandemic first began. Enhanced technology will allow you to streamline operations, which in turn cuts costs and boosts profitability. With the right kind of technology, you’ll also be able to protect your small business against cybercrime and other digital threats that could jeopardize your future.
As devastating as the pandemic has been, it has revealed many changes small businesses should embrace to be better prepared to handle disruptions in the future. PADGETT BUSINESS SERVICES® has helped small businesses secure more than $94 million in COVID relief funds, and our network of CPAs, enrolled agents and tax professionals can assist you with strategic planning, cash flow management, and other advisory services that can strengthen your operations. Reach out and let us work with you to achieve success in today’s “new normal.”