How You Can Survive a Tough Economy

With little doubt from the experts that the economy is stalling, business owners need to be as proactive as possible when making decisions in the business. But, where do you start and what can you scale back without hurting the opportunities for your business?

Take a quick look at a few of our tips:

1. Do not overreact— take action based only on data.
2. Get key employees' input in planning strategies.
3. Do a revised business/strategic plan for the next six months.
4. Revise cash flow for the next six-month period.
5. Revise a pro-forma statement for the next six months based on a revised business plan.
6. Explain your plan to the entire staff and ask for their input.
7. Evaluate personnel needs across the board.
8. Hold off replacing personnel that have resigned, retired or been terminated.
9. Make cuts in personnel (quickly if necessary), starting at the top of the organization.
10. Maintain larger cash position to take advantage of sale prices.
11. Do a monthly aging of accounts receivable.
12. Enforce collection terms.
13. Be flexible in looking for new solutions.
14. Review inventory for slow moving items— turn into cash.
15. Do an analysis of inventory. Only re-order those items that sell, but don't over order inventory.
16. Do a monthly aging of accounts payable.
17. Make sure your customers acknowledge your company's excellent customer service.
18. Owner should sign all checks for 60 days to a get feel of cost areas of company.
19. Establish a temporary line of credit through your bank.
20. Re-evaluate timing of capital expenditures.

Need more ideas? Our business-owner members have compiled their top 50 tips for planning for an uncertain economy. Check them out and let us know what works for you!