How do you intend to stay in business for the next year? There is an opportunity to build your business even stronger than before. There are a few routes you can take, but they all require planning and having the cash flow to be able to pivot. Here is how to rebuild your small business.
Steps to Rebuilding Your Small Business:
Finding New Markets
One way to stay in business for the foreseeable future is to reach new markets. It’s important to diversify your revenue streams and this is a great way to do so. Unfortunately, it is easier said than done. You will be required to create new products, alter existing products, or otherwise pivot your business to fill a different need. Be sure to draft a detailed plan for this, and it will require enough working capital to follow the plan.
Finding New Clients
Some sectors are still chugging along. If this is the case for your business, you can simply branch out in your existing market to sell to new clients. This will probably take more focus in your marketing, or you can ask your existing clients for referrals. Bringing in new clients is obviously every small business’s goal, so the competition will be stiff. Brainstorm how your business can stand out or be a better fit for your market. Maybe this is through better customer experience or a streamlined sales process. However you plan to find new clients, this can help boost your business and make sure you can build or rebuild throughout the year. It’s important to prioritize keeping your existing clients, even while seeking new ones.
Scaling Your Small Business
I expect a lot of businesses to be growing this next year. It has been hard on small businesses. Now can be a great time to scale your business by taking advantage of available talent to hire, lower marketing costs, and low entry costs for new markets through startup financing. It’s important to manage your credit risks as your receivables grow, and if you’re able to reach new markets or clients, be sure to have the capital available to fulfill those new orders.
Scaling Down Your Small Business
If you haven’t already, you can look at scaling down some of your business. Maybe you branched into new markets or took on new clients and now your business is overextending itself as other businesses bounce back. It can be strategic to scale down on some of your operations if they are preventing you from investing in the bread and butter of your business. The main goal is to maximize your profit. So, if you pivoted during 2020 and it’s not working anymore, don’t be afraid to pivot again. This leads us to the next point: PIVOT.
According to a survey by American Express, the majority of small business owners have pivoted their business during 2020. Further, the majority of these business owners expect to pivot their business again. It’s critical that your business adjusts with the changing demands of your market. If your business has been in survival mode for the past year, you may have to make some changes to get out of that zone. If you’ve experienced growth this past year and now are fending off competitors as businesses bounce back, you will have to make some changes for that. You can’t afford to be stubborn with your business plan if you are looking to build or rebuild this upcoming year. Be flexible and ready to adapt. Be ready to pivot your business to capitalize on recovering markets.
How to Rebuild Your Small Business:
Lastly, building your business back up will require capital. Bank loans are hard to come by. Also, they can take a while for approval decisions or limit your funding amount. MCA lenders will probably resurface, but be wary of this funding method. Typically, MCA loans are extremely expensive and only cover very short-term financing needs. When looking to rebuild your small business, you will need a flexible and growth enabling funding source.
Rebuild Your Small Business with Factoring Services
Eagle Business Credit is a factoring company in Norcross, GA that provides debt-free funding to small businesses seeking better cash flow. Factoring services are not a loan. Instead, a factoring company would pay your business for your open invoices, and then you would have the immediate cash on hand to make your next sale or develop your next product. It makes sense to factor your receivables if you are a growing business, and most small businesses would qualify.