Can Entrepreneurs Survive a Lagging Economy?

Short answer, they must. Long answer, their survival will depend on a number of factors. When the environment in which an entrepreneur enjoys success changes, it is bound to have an effect on the bottom line, whether positive or negative. Some steps a business person can take to lessen the impact of a slowing economy are:

Have a flexible attitude – A changing situation requires a change in thinking. You must be able to adapt to challenges as they come your way. This tends to be more difficult for smaller businesses, without access to lines of credit and capital enjoyed by larger companies.

Business Woman on Phone

Business Woman on Phone

Keep Marketing – A sluggish environment doesn’t mean you can forget about marketing. You still need to remind people why they should do business with you. Try cutting back if necessary, rather than stopping altogether.

Try to keep current customers

– This may involve cutting prices a bit, but certainly don’t go below what you can afford. You may want to treat customers who have contracts as special cases.

Keep up to date – This covers a number of areas, but the most important is being aware of new developments in your field. Also take advantage of any new training opportunities as they arise.

Update your business plan – Your business plan should be updated every year, and should reflect any changes that occurred during the previous year. It is important to be clear about the direction you want your business to go.

Get advice – Talk to some people you consider successful and get some tips. It would help if you’re not competing with them in any way. Be sure to check online resources as well.

Network – This is essential for any business, no matter what the economic climate is like. Attend social gatherings, join associations, anything that will help you make good connections that will help your business.

Not all businesses can survive a tough environment. This is part of the process of adapting too. In the event that your business folds, you can seek a job temporarily, or try some other venture. Do something else until the time is right to try again if that’s what you choose to do.

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