The past few years have seen a recovery in the U.S. economy, but some economists and economic observers are concerned that the U.S. could be at risk for an economic slowdown.
With global economic uncertainty and other economic instability, even if the U.S. does not go into recession any time soon, it's always a good idea to keep strategies in mind for how your business could adapt to a slowing economy or to a slowdown in your specific industry or key markets.
One topic to think about is, why do your customers buy from you? The answer might be different in a slow economy, as opposed to a thriving one. For example, especially if you are a B2B company, your product or service may have a different value proposition in a different economy when your customers are cutting back on expenses, than it does when times are good and your customers are feeling more confident.
Try to adapt your sales strategy to get inside the minds of your customers and match their new priorities to suit the realities of a slower economy. If your customers are cutting back on spending, you need to reassure them that your product or service is a good value with a strong ROI.
Instead of showing them how your product or service can help them make more money or be more profitable, you may choose to focus on showing them how your product or service can help them save money. You can keep selling the same product, but utilize a different sales strategy.
PLAN AHEAD!! As the saying goes, "fail to plan - plan to fail." Many small business owners tend to only concentrate on the here & now; how sales went that day and what’s on the horizon for tomorrow. Unfortunately, shortsightedness can spell trouble when it comes to a dry spell in sales or emergencies when instant cash is needed. Contrary to what you read on loan shopping websites, real financing doesn’t happen at the click of a mouse. So, if you’re searching for the most prudent financing options for your small business, you must be proactive and not reactive. Don't wait until you're backed into a corner and scouring the Internet for cash.
Here’s a few small business funding options to consider:
ACH Small Business Loans - For starters, an ACH small business loan can also be referred to as a small business cash flow loan, small business revenue based loan or a small business merchant cash advance. The ACH designation really applies to how the lender is paid. ACH or Automated Clearing House, refers to the lenders ability to withdraw an agreed upon amount directly from your checking account at agreed upon intervals, typically daily or weekly. LEARN MORE
Business Cash Flow Loans - Type of debt financing, generally for working capital, using the expected cash flows that a borrowing company generates as collateral for the loan. You’re essentially borrowing from cash that you expect to receive in the future by giving the lender the rights to a predetermined amount of these receivables. Get up to $2 Million in as little as 24 hours, regardless of credit! LEARN MORE
Business Expansion Loans - Designed for prime businesses with better risk profiles, our business expansion loan is an extended-term loan with rates ranging from 9.99% - 36%, terms of 18 to 24 months, multiple payment options, and loan sizes up to $250,000. It’s large-scale growth capital if you're looking to invest in bigger projects, with the same speed and simplicity LVRG is known for. GET STARTED
Business Line of Credit - A small business line of credit provides flexibility that a regular business loan doesn’t. With a small business line of credit, you can borrow up to $100,000 and pay interest only on the money borrowed. You then draw and repay funds as you wish, as long as you don’t exceed your credit limit. Need to manage cash flow? Buy inventory? Pay for a surprise expense? Then a business line of credit makes sense. LEARN MORE
Revenue Based Financing - Today’s business owner is constantly on the lookout for growth opportunities and must move quickly to take advantage of them. An opportunity for an acquisition or expansion can arise suddenly and needs an immediate response and immediate cash. There’s also the need to purchase equipment or inventory. And of course, there will always be emergencies and cash flow gaps that need to be quickly managed with working capital. That’s why revenue based loans & cash flow loans from LVRG are the fastest growing working capital solutions among small and medium-sized businesses. They’re the most prudent option for business owners needing capital to fuel or accelerate their businesses’ growth. LEARN MORE
Working Capital Loans - At any stage of growth, fast, flexible funding is essential to the continued success of your small business. Our working capital loans feature 6 to 18 month terms and fixed payment options to accommodate your specific needs, so you can focus on what you do best, running and building your business. LEARN MORE
Sometimes a slow economy can give your company the added burst of motivation that you need to shake things up. Instead of making you complacent, a slow economy can actually be a good thing. It can motivate you to make needed changes—whether that means eliminating unprofitable products, or creating a leaner organization, or investing in new growth opportunities.
No single business owner can control the vagaries of the global economy: All small businesses are affected by larger forces that are beyond any individual's control. But all business owners have the power to control their attitude, their strategies, and their level of focus and effort. Even in a slow economy, you can find ways to think creatively about your business and keep trying new things; as and help your sales keep growing.