{"id":23,"date":"2020-12-20T18:42:58","date_gmt":"2020-12-20T18:42:58","guid":{"rendered":"https:\/\/www.western-ny-accounting.com\/blog\/?p=23"},"modified":"2021-01-02T18:43:55","modified_gmt":"2021-01-02T18:43:55","slug":"hard-times-get-back-to-business-basics","status":"publish","type":"post","link":"https:\/\/www.western-ny-accounting.com\/blog\/hard-times-get-back-to-business-basics\/","title":{"rendered":"Hard Times? Get Back to Business Basics"},"content":{"rendered":"

\"\"It’s reassuring to remember that downturns are a normal part of the business cycle. And, just as there are strategies that help businesses thrive during profitable times, there are basic survival tactics that businesses can employ when the outlook is less than rosy.<\/p>\n

Control Spending<\/strong><\/p>\n

Finances should be your fundamental concern when economic conditions are unsettled. When sales slow, it’s time to preserve your cash. Look closely at how you can reduce overhead. Make certain that all your operating expenses are necessary. Even if you’ve recently made cuts, see if there are other measures you can take. Unless absolutely necessary, consider putting plans that call for capital investment on the back burner until conditions improve.<\/p>\n

Maintain Customers<\/strong><\/p>\n

While containing costs is essential, maintaining your customer base is also crucial. So, when you’re deciding how to trim spending, make sure you don’t make cuts in areas that deliver real value to your customers. At the same time, watch your receivables. Make sure your customers’ accounts stay current.<\/p>\n

Think Short Term<\/strong><\/p>\n

Plan purchases for the short term, keeping a minimum of cash tied up in inventory. At the same time, however, make sure you’ll be able to restock quickly. Your suppliers may be able to suggest ways you can cut costs (perhaps by using different materials or an alternative manufacturing process). See if you can negotiate better credit terms.<\/p>\n

Plan for Contingencies<\/strong><\/p>\n

There’s a big difference between imagining that you might have to seriously scale back your business and having an action plan in place that you can quickly execute. To develop a realistic contingency plan, prepare a budget based on the impact you imagine an extended downturn would have on your business. Then outline the steps you would need to take to survive those conditions. For an added level of preparedness, draw up a second, “worst case scenario” budget and chart the cost-cutting steps you’d need to take to outlive those more dire circumstances.<\/p>\n

Many businesses will survive these challenging economic times by being informed about their financial condition and by planning ahead to succeed. Connect with us, right now, for tax advice and business planning.<\/p>\n

We offer\u00a0FREE consultation<\/a>\u00a0to help you choose the right structure and ensure that you minimize your taxes. Call us and ask for Dennis Johnson\u00a0to discuss your specific needs.<\/p>\n","protected":false},"excerpt":{"rendered":"

It’s reassuring to remember that downturns are a normal part of the business cycle. And, just as there are strategies that help businesses thrive during profitable times, there are basic survival tactics that businesses can employ when the outlook is less than rosy. Control Spending Finances should be your fundamental concern when economic conditions are unsettled. When sales slow, it’s time to preserve your cash. Look closely at how you… Read More<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[4],"tags":[],"class_list":{"0":"post-23","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-best-business-practices","7":"entry"},"_links":{"self":[{"href":"https:\/\/www.western-ny-accounting.com\/blog\/wp-json\/wp\/v2\/posts\/23","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.western-ny-accounting.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.western-ny-accounting.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.western-ny-accounting.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.western-ny-accounting.com\/blog\/wp-json\/wp\/v2\/comments?post=23"}],"version-history":[{"count":1,"href":"https:\/\/www.western-ny-accounting.com\/blog\/wp-json\/wp\/v2\/posts\/23\/revisions"}],"predecessor-version":[{"id":25,"href":"https:\/\/www.western-ny-accounting.com\/blog\/wp-json\/wp\/v2\/posts\/23\/revisions\/25"}],"wp:attachment":[{"href":"https:\/\/www.western-ny-accounting.com\/blog\/wp-json\/wp\/v2\/media?parent=23"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.western-ny-accounting.com\/blog\/wp-json\/wp\/v2\/categories?post=23"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.western-ny-accounting.com\/blog\/wp-json\/wp\/v2\/tags?post=23"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}