Business Education

3 Effective Ways to Emerge from the Pandemic Even Stronger

With every crisis, there is a conclusion. Each economic downturn eventually transforms into recovery. Sometimes, the two are extreme and stark contrasts. Other times, they are mildly separated, yet perceptible. It’s how businesses act and react that is most important. Unfortunately, too many business owners react in a reflexive, impulsive way. Meaning, they don’t fully think through the situation overall, rather they merely act in the moment. Conversely, business owners that see long-term benefit even when there’s an economic downturn. Those companies come out stronger after the crisis passes.

Seize Opportunities When they Arise

Property investors who buy when the real estate market slides hold their assets until the market recovers and sell for a profit. Similarly, investors buy stocks when they fall amidst economic turmoil.

When the crisis subsides, the temptation will be to turn back that progress and retreat into old behaviors. But entrepreneurs need to shift from overload to shared load, and to practices that can transform team performance to find unexpected growth–and lower unsuspected risk. —Inc.com

These savvy people also sell when the prices begin ticking up again. There’s most definitely a pattern here and a lesson to be learned. That being, it’s possible to turn an otherwise bad situation into a beneficial one with the right moves. These individuals understand that the laws of physics do work in reverse when it comes to economic circumstances. Ironically, what goes down must inevitably go up. These people use that counterintuitive dynamic to their advantage.

3 Effective Strategies for Emerging Out of an Economic Downturn

So, just how do some business owners make the proverbial lemonade out of a bowl of lemons? These entrepreneurs don’t get caught in a negative mindset. In fact, they look at things pragmatically and create strategies that benefit them. Here are three ways to come out of an economic downturn stronger:

Know the numbers. The very first thing you need to do is fully understand precisely where your business stands at this point in time. If you don’t know the numbers, any plans you come up with will only reveal the true matter of the situation and this could be very costly. Take the time to get into the numbers to know exactly what you’re dealing with.

Devise a realistic, workable plan. Next, you’ll need to devise a realistic, strategic, and actionable play-by-play plan. It’s okay to look at the big picture, but be sure to address possible scenarios with contingencies. You don’t have to plan for every possible set of circumstances, but you should definitely have ways to work through the most likely.

Invest heavily in strategic relationships. Another smart strategy is to invest as much as you can in strategic relationships. Good entrepreneurs know this intuitively and leverage these relationships in ways that benefit everyone. Come up with ways that are advantageous to all parties involved and work towards those goals.

What other steps would you suggest to overcome an economic crisis? Please take a moment to share your thoughts and experiences; it could prove very helpful to others!

Interested in learning more about business? Then just visit Waters Business Consulting Group.

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Why Small Business Owners Should Start Asking Employees Why They Stay Instead of Why They’re Leaving

January 22, 2026 No Comments

Exit interviews have been part of corporate America since the 1950s, but gained widespread adoption in the late 1980s, exploding in popularity in the 1990s. Fast forward to 2021 and 2022, another tool was introduced and is steadily gaining adoption, and it’s known as the “stay interview.” Like many other tactics used by big businesses, these trickle down and are used by small organizations. So, what is a stay interview and why should small businesses start using them?

How to Transition from a Self-Employed Job to an Actual Business

September 24, 2020 No Comments

There’s a really big difference between owning your own job and owning a business. we’ve touched on this subject before, and how to tell one from another. But if you’re in this situation (read: predicament), You’re probably wondering how to transition or more particularly, transform, your self-employed job into a full-fledged business. it’s not necessarily a simple process, but it’s definitely not impossible, in the vast majority of cases. With the right advice, and a bit of vision and perseverance, you can make the transition from a self-employed gig to an actual business. The Difference between “Owning” Your Own Job and Owning a Business If you’re reading this article, chances are excellent that you are in a particular set of circumstances. That is, you don’t work for an established corporate entity, but do work for yourself. However, you’re a one person show. You do it all. Everything is up to you. Most Americans love the idea of starting their own business and being their own boss. Who wouldn’t? If you already have the skills to deliver the product or service to customers, why would you not set out on your own? The sad truth is that most business owners in today’s world do not actually own their own business — their business owns them. They never learn how to create business models capable of producing both time and financial freedom. —Forbes It’s you who is responsible for the productivity, the customer service, the back office stuff, marketing, and everything that goes into making it possible. But, you don’t have any employees, or contractors, or only occasionally rely on others to pick up when you simply can’t do it on your own. In other words, if you’re not working, you’re not earning. However, if you can leave the operation to others, and are not the soul producer, then you own a business. This represents the key distinctions between the two. How to Transition from a Self-Employed Job to an Actual Business Now, given those very stark differences, how exactly do you transform your self-employed job into a real business? Basically, you’ll have to change and break a number of routines and habits. Here’s some helpful steps you can take to make the transformation happen: Envision what you would like the business to eventually be. This is something that you’ll have to constantly revisit in order to make your dream come true. Even if you hire someone part-time, or get to a position where you have more than one full-time employee, you must always think about the next step up. Expand your team. Okay, This sounds blatantly obvious, but it’s something that too many people in this position get hung up on for way too long. They might occasionally rely on a freelance contractor, or even higher on one or more part-time or full-time employees. But, they’re always focused on productivity, rather than actually expanding the business with marketing, networking, and more. Instead, bring in one person to contribute to the work at hand. Then, bring on someone else to help with the administrative side. You can repeat this process a couple or few more times to really build up a fully legitimate business. How to Cash Flow Expansion. One of the greatest challenges for solo business operators, is to ensure they sufficient cash reserves and cash flow to capitalize their expansion. Consequently, they simply accept their current status and don’t take on the risk to expand. Frankly, your risk of starting your business was much greater than expanding! This will help; Forecast or Budget what you estimate you will need in terms of capital to cash flow the next 6 months of expansion (new hires, added marketing, etc.), until the sales increase sufficiently to offset your increased cost of hiring support. Then, the key is to offload your responsibilities that can be done by someone else, and only take on those responsibilities that brings in revenue and the highest value to your expanding business. What other suggestions do you have to truly transform a one-person gig into a legitimate business? Please take a moment to share your thoughts and experiences so others can benefit from your prospective! Interested in learning more about business? Then just visit Waters Business Consulting Group.

Tesla is Now Asking Suppliers for Cash Back, Here’s How to Avoid that Scenario

August 14, 2018 No Comments

Tesla is back in the news. Headlines proclaim the electric car manufacturer actually approached some of its suppliers, requesting cash back in an effort to realize profitability. Elon Musk quickly reacted to the reports. Now, it’s a he-said-she-said storyline. But, that’s just another fight the media will happily play up for clicks and tune-ins. The reality is Tesla is not a profitable company. Even though it enjoys so much buzz and customer loyalty, it can’t turn a profit. The Top Reason Small Businesses Fail The company reportedly burned through $1 billion in a quarter. And, it’s promised to bring its expenditure to under $3 billion this year. That, after it went through $3.4 billion last year. Not to mention, it lost $710 million in Q1 of this year alone. Just as good cash flow keeps a business afloat, poor cash flow can sink it. In fact, poor cash flow is a big reason why one in every four businesses doesn’t make it past the first year. And why more than half don’t survive past the fifth. —Fresh Books.com It gets worse. The company might not reach a stock conversion price of $560.64. Which means it will have to shell out $230 million to obtain a convertible bond in November. Its stock fell by nearly 4.5 percent just in the last twelve months and continues to struggle. This is an important lesson to those who’d like to start a small business because it’s one of the main reasons startups fail in the first place: inadequate cash flow and reserves. Problems with cash is typically the reason small businesses fail. Top Small Business Cash-Flow Mistakes to Avoid So, if cash is the biggest reason new companies fail, then how do they actually get into such a pickle? Well, it’s not just avoiding bad business ideas (although that’s certainly helpful), it’s more about being smart with money in the first place: Impulse spending. We all know retailers embrace this practice. But, it’s far too easy to fall into the trap of impulse spending, particularly during the startup phase. It’s also a shortcut to failure because it’s the ultimately lack of responsible cash management. Past-due receivable apathy. When cash is rolling in, it’s very easy to let an invoice or two or more slide. After all, there’s plenty of money coming in, so why bother? It’s important to stay on top of receivables because it sends the wrong signal when you become apathetic. Plus, you might be able to put that money to good use in the future. Not sticking to a real budget. You wouldn’t spend more money that’s in your personal bank account. However, when it comes to business finances, too many owners just don’t adhere to a realistic and strict budget. And, that’s a recipe for failure. Failure to put some cash aside. Feast or famine. That’s an old cliché but it’s entirely true for many businesses. That reality means it’s best to have some cash on-hand when needed because it’s very likely that time will come. What other ways do small business mishandle cash? What other advice would you give about maintaining positive cash-flow? Please share your thoughts and experiences! Interested in learning more about business? Then just visit Waters Business Consulting Group.