There are plenty of reasons for entrepreneurs to feel good about 2016: the economy is continuing to show signs of improvement and there’s a boom of optimism in technology-based companies. But with China’s stock market looking shaky and our own echoing those concerns, we have to be ready for what happens if the economy begins to weaken in 2016. Is your business ready?
The first thing you have to do to be ready for a shaky economy is to manage your profitability. Most companies have a very small margin for error; a 10% decline in revenue could wipe out your bottom line. If you have a plan to produce marginal, short-term profit in the face of a drop in revenues, it could make all the difference. You should also be sure to identify your best customers, who also happen to be one of the core strengths of your business. If you can keep them coming back in the face of an economic recession, you’ll have some guaranteed revenue to draw from. You should also take a look at your cost structure and find things to cut. Things that are nice to have but not indispensable, things that have fallen into disuse or were never used to begin with; these things can be gotten rid of to save your company money. Check out the link below and learn what other steps you can take to protect your small business from an economic downturn.
Read the full article here: Could Your Business Survive an Economic Downturn in 2016? Four Ways to Prepare Yourself
