While it may seem overwhelming to think about the future during times of economic uncertainty, it’s still important to consider your future plans. If your business has suffered a reverse in fortune and needs to recover to survive, though there are no silver bullets, you can take some positive action to rebuild.

Keep informed on changes in your market

Other businesses in your industry likely face similar challenges. Stay informed about industry trends, both in your local area and across the country. Do some research on how similar businesses are adapting to the economic turmoil and the changing trends impacting on your industry.

Create flexible strategies

One of the great things about running your own small business is that you can pivot your strategy quickly without needing levels of approval from others.

Adapt your business strategy without an overhaul by:

  • Focus on the one product or service that customers need now.
  • Diversify if a new demand appears by identifying what customers need, even if it’s short-term.
  • Change your customer segment if your products aren’t currently meeting your target market’s needs and reach out to a different audience.
  • Analyze your customers’ needs as your target audience’s concerns may have shifted during this time, and if your product or service still meet those needs.

Each of these ideas can help you adjust your business strategy to allow for flexibility once the current crisis is over. You may even uncover new customers, markets or products and services for the future.

Collaborate

Teaming up with other businesses to work towards recovery is a smart way to increase capability, share resources, costs and risks. The internet, sub-contracting and having access to talent from around the world have made this even easier.

Working alongside another business gives you shared responsibility and other colleagues to work with and rely on. If you face a crisis and can’t get your business back up and running in a short space of time, knowing you’ve got back-up from other companies can offer reassurance for both you and your customers.

Collaborating can help you:

  • Access new product/service lines.
  • Develop new product knowledge.
  • Reduce costs.
  • Fill expertise gaps in your business.
  • Outsource production.
  • Receive volume discounts.
  • Speed up new customer development.
  • Access new business models.

Partnering with other businesses can take various forms: it can be formal through contractual obligations, informal through verbal agreements, significant through shared suppliers and long-term customers, or ad hoc, where businesses come together as needed.

Build capability

When your business is recovering, it makes sense to run it more efficiently by having the right equipment, people, or resources on hand to do the job, or the facilities to do it in.

Ways to build internal capability include:

  • Adopting the latest technology to automate.
  • Implementing quality control systems to reduce errors or returns.
  • Access to additional resources at short notice.
  • Using suppliers who can keep providing shorter production runs.
  • Contingency plans to employ contractors if you’ve let staff go.

Your customers are the most important part of your business, so document how you’ll manage a decrease in activity while maintaining great customer service.

Concentrate on positive cash flow

Over the next six months, cash flow monitoring and reliable cash flow will be essential when determining your forward plans. Help increase cash flow by identifying products and services that generate immediate sales and, if possible, lock in customers with contracts or loyalty incentives. Then look at new channels to enhance sales; open online, launch in new regions, offer new services or collaborate with other businesses.

Then try to reduce cash outflows by identifying expenses you can eliminate or reallocate.

You can also access funding and financial programs offered by the federal government, provincial governments and many financial institutions.

Build mental stamina and support

It’s no secret that everyone has moments of self-doubt. And with setbacks, disappointments and challenges all being part of running a business, it’s important to have the right tools on hand. It’s important to develop and practice coping mechanisms, as well as having a good network to lean on and ask for help.

Try one or more of the following if your circumstances are stacked against you:

  • Talk to family, friends and people you trust.
  • Reach out to other business owners with similar issues.
  • Collaborate with complementary businesses to reduce overall burden.
  • Focus on small wins rather than trying to solve everything.
  • Set short-term achievable goals.
  • Celebrate every success.

Develop a series of actions to help you cope with the stress of being in business and seek help when you need it. Find a mentor or friend who has industry experience and a background in the solutions you need (such as increasing productivity, driving sales, developing new products or markets). Read our articles on the five ways to reduce stress as a business owner and the importance of advisors for small businesses.

Next steps

  • Stay informed about industry trends and how other businesses in your sector are responding to the economic climate. Regularly assess your competitors and customer behavior to identify new opportunities or challenges.
  • Evaluate your current offerings and pivot where necessary. Focus on what your customers need now, diversify where possible, and explore new customer segments to make sure your business remains agile and responsive.
  • Consider partnerships with other businesses to share resources, reduce costs, and access new expertise. Whether formal or informal, collaborating can strengthen your position and offer mutual support during recovery.
  • Prioritize managing cash flow effectively and look for ways to increase revenue while reducing unnecessary expenses. At the same time, take care of your mental well-being by seeking support, setting achievable goals, and celebrating small successes.

The current economic climate might have raised questions for you about the best decisions to confidently move your business forward. Take back control from any economic impact you’re facing and plan what you can change, even if it’s only small steps at a time.