Running a business is basically an art in terms of staying afloat financially. When things start to go downhill, it’s usually due to a lack of revenue - and, if you’d like your startup to survive past the first five years, you need to find a way to safeguard it.
Or even three ways, preferably, so that you have a couple of safety nets out there to fall back on. Start by having a look at the tips below and make sure that your business is able to handle all of those ups and downs that you will face throughout the year.
#1 Make use of your downtime
A lot of business go through long periods of downtime when it comes to customers, sales, and profitability. While some simply roll over and wait for the numbers to pick back up again, others understand that this time can be productive as well.
Find ways to make your least productive sales period one of the most productive ones in terms of planning. There is, after all, a lot you can do for your business even if you don’t have that many customers to serve at the moment.
Use it to work on your business plan, for example, and focus on marketing activities that don’t require that much money such as social media and regular word-of-mouth.
#2 Create a sustainable budget
Planning for the downtime means that you should have a budget that builds in savings when your business is at its peak. Without this, you’re simply not going to get through the year - and all your hard-earned money will be spent on trying to stay alive when business is slow.
A sustainable budget, on the other hand, understands that business can be slow even for months at a time - and you need to have one that works specifically for your business.
Stick to this budget like glue and you might be able to avoid those future cash flow problems.
#3 Get the insurances you need
Finally, one of the best safety nets out there for startups is, of course, a comprehensive insurance. You should have this even if you rarely experience any downtime, though, as it’s just another way to make sure that an unfortunate event doesn’t leave you with nothing at all.
Try to find one that works for your business and the specific field it’s in, and have a chat with a public adjuster in case you’re in the middle of an insurance claim. That way, you’re making sure that you’re getting what you deserve and that your business is able to stand on its feet no matter what should happen.
Now you can feel a lot more confident if the market should take a turn for the worse and may even be able to handle a slight decrease in customers.