5 Survival Tips for Today’s Savvy Entrepreneur

 
My joy was short lived. After waiting about a month for a client to pay me on a (5 day net) creative project, the check came in the mail. I did the “happy dance” ‘til I was dizzy!

Getting paid would allow me to catch up on some of my obligations as a small business owner myself, already struggling in a struggling economy.

I began to figure out my bills and hope for a few left over dollars to do a

mini-splurge at the local thrift store.

Before the ink could dry on the check, the client contacted me. She asked me not to cash it, as the funds would not “officially” be available for another week due to an unanticipated emergency. Needless to say, I was shocked and devastated.

The check was already late, and based upon my income projections, I promised to pay several of my vendors. Her not honoring her word prevented me from honoring mine. And unfortunately, it wasn’t the first time.

Not long before that, a publisher with whom I had enjoyed a long-term business relationship, came down with a bad bout of the flu, and extended his apologies for not being able to issue checks because he was bed-ridden for two weeks.

Life happens. That goes without saying. But just because you’re a “small” business owner doesn’t mean you should be “small time” in the way you conduct your business or handle crisis management. In fact, you should be more prepared for mishaps due to fewer resources. The buck stops with you!

Not providing for “the worst case scenario” can cause irreparable damage and affect your ability to compete with larger businesses; ultimately costing you in terms of customer loyalty, client confidence, and bottom line objectives.

After all, folks figure if you can’t handle your business challenges, why should they trust you with theirs?

Whether you manage a staff of one or 91, here are a few business practices you should employ to cover your assets and protect your bottom line.

EXPECT THE BEST BUT PREPARE FOR THE WORST

Do you have a back up if your files are destroyed on your hard drive? Do you have systems and people in place if you become ill or need to take a vacation? Are your records well kept if someone needs to temporarily assume your duties, or establish a paper trail of your activities? Could your business recover if you lost a key client? These are all points to consider in your strategic planning. Always have a plan B.

HAVE AN EMERGENCY FUND

“Save for a rainy day” has become more than a cliché; in today’s economic climate it’s as crucial as a commandment! Experts differ in the exact amount an “emergency fund” constitutes—some say the equivalent of three months salary, others advise six months. Apply it to your individual lifestyle and circumstances, then act accordingly. Today.

EMPOWER YOUR STAFF

Hire competent people and give them the training and resources to act independently in resolving small customer issues. Assigning them responsibility and accountability helps them to develop personally and professionally, and improves the efficiency of your organization. Understaffed? Hire an intern.

ESTABLISH SUPPORTIVE ALLIANCES

Don’t perceive all your peers as a competitive threat. Seek out owners with whom you have a compatible work ethic and similar visions and values, and find ways to enhance each other. This can be accomplished through online groups or networking associations dedicated to your particular field or trade.

HONOR YOUR WORD

Many small business owners go to great lengths to overcome perception issues and convey a professional image. They invest in elaborate web sites, purchase fancy business cards, and go the whole nine yards to recruit clients and impress associates. But all these measures can be in vain if they establish a reputation of repeatedly not honoring their word– whether it’s to a client, a vendor, a business partner, or employee. Never over promise and under deliver. Don’t say one thing and do another. Always strive to keep your end of the bargain because ultimately your livelihood affects others.

Follow these five tips and you’ll successfully navigate the many “obstacle courses” that come with owning a small business, and you’ll breathe easier too.

About the Author: Jennifer Brown Banks is a veteran freelance writer who teaches at Coffeehouseforwriters.com and blogs at Bloggingpro.com

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