Simple Ways to Keep Business Going During Tough Times

Back in the 1980s, Harley-Davidson was in serious trouble. Sales were plummeting, their bikes were being criticized for quality issues, and Japanese competitors were capturing their market share. 

It really looked like they were done for.

But they turned it all around and pulled off an epic comeback

They dug deep, revamped their strategy, doubled down on quality, and closely listened to their customers and community. A huge part of their revival was the dedicated support from their fans.

Harley riders banded together to form the Harley Owners Group (HOG), a community of die-hard fans who rode together, organized events, and lived and breathed Harley.

And just like that, with the backing of their loyal community, Harley rebuilt their entire image and business from the ground up.

Today, this legendary American motorcycle brand has become a symbol of beating the odds and proving that with the right strategy and community support, you can bounce back from anything.

So, if Harley-Davidson can claw back from the edge of extinction, your business can too.

Let’s keep in Harley’s winning spirit and explore some tips for powering up your business during difficult times.

The Domino Effect: What Gets Affected in Tough Times

When times get tough, it’s not just your bottom line that takes a hit; it’s the very foundation of your business. 

Here’s what usually gets impacted:

Employee Morale

Your team is your backbone. When business is rocky, their spirits can go low. And low morale means less productivity, more leaves, and mass quitting. 

In short, employees who aren’t motivated or happy aren’t going to put in their best work, which can lead to a decline in overall business performance.

Cash Flow

Cash is king, and during tough times, it feels like things are out of control. Expenses keep piling up — rent, salaries, utilities, supplies — while income decreases. This financial strain can stop you from investing in growth, creating a difficult cycle to break.

Customer Loyalty

Don’t mean to be rude, but customers can be pretty fickle with their choices. Especially when things get rough, they might switch to a cheaper or more reliable option, leaving you in a bind. Maintaining their loyalty becomes a serious challenge during demanding days.

Supplier Relationships 

Suppliers need to get paid too. If you’re having trouble keeping up with payments, those relationships can sour quickly. This can lead to supply chain disruptions — delays in getting products, reduced credit terms, or even losing suppliers altogether. 

A strained relationship with suppliers means less flexibility and potentially higher costs, further squeezing your margins.

Market Position 

Your brand’s position in the market can take a serious hit. Competitors will see your struggles and exploit them, trying to poach your customers and highlight your weaknesses. 

Plus, your market share can shrink, and rebuilding it requires significant time, effort, and resources, which are already stretched thin during tough times.

Key Strategies to Keep Your Business Afloat During Tough Times

Now, let’s get to the good stuff. Here are some tried-and-tested strategies to help you weather any kind of business storm.

1. Communicate Openly and Honestly With Customers And Employees 

During difficult times, your customers and employees will also likely feel the pinch. But transparency is key here.

Keep your employees, customers, and suppliers in the loop. Honesty builds trust, and trust is your most valuable currency during difficult times.

Regular updates on your business, whether through newsletters, meetings, or social media, can go a long way in maintaining their morale and loyalty. 

A little appreciation can work wonders in these brutal times. Thank your customers and employees for their support, and let them know how much they mean to you. 

Send personalized thank-you notes or small gifts to your most loyal customers and employees. You can also implement a customer loyalty program that rewards repeat business and encourages referrals.

These are small gestures that can have a significant impact on them. 

2. Cut Costs Wisely

When business is tough, every penny counts, and it’s time to tighten the belt. But do it wisely. The goal here is to limit unwanted expenses without going after the necessary ones. 

Here’s how you can cut costs strategically without jeopardizing your business’s vital functions.

➤ Identify Non-Essential Expenses

First things first, grab that magnifying glass and take a close look at your expenses. Separate the essentials from the non-essentials. Ask yourself: What can we live without for a while?

Examples of Non-Essential Expenses:

• Subscriptions to magazines or services that you rarely use.
• Premium software with cheaper or free alternatives.
• Office snacks and catered lunches.

➤ Review and Reduce Subscriptions

Subscriptions are sneaky little dents in your budget. They seem harmless at first, but they can add up to a significant amount over time. 

Take a good, hard look at all the subscriptions your business is currently paying for. Do you need all of them? Probably not.

Steps to Review Subscriptions:

✅ List All Subscriptions: Create a comprehensive list of all the services and software your business subscribes to.

✅ Evaluate Usage: Check how often each subscription is used. If something is rarely used, consider canceling it.

✅ Seek Alternatives: Look for cheaper or free alternatives that can do the job just as well.

➤ Monitor Your Finances Closely

Make sure you have a clear understanding of your financial situation. Regularly review your income and expenses, and look for patterns or areas where you can cut costs.

You can hire an affordable bookkeeper who can keep track of your finances without you having to break your head. 

Additionally, you can use financial and payment software to keep track of your cash flow. Tools like QuickBooks,  Xero, and Gusto can provide real-time insights and help you make informed financial decisions.

3. Focus on Core Competencies

It’s tempting to try to branch out and explore new opportunities when things are uncertain, but trust us, now is not the time for detours and new changes. 

Instead, double down on what you do best. This is about honing in on your core competencies, strengthening your core offerings, and making sure they shine brighter than ever. 

Here’s how to do it in a way that maximizes value for your business and your customers.

➤ Identify Your Core Competencies

Your core competencies are the unique strengths and capabilities that set your business apart from the competition. These are the things you do exceptionally well, the skills and expertise that your customers rely on you for.

Start by identifying what these are.

Steps to Identify Core Competencies:

✅️ List Your Key Services or Products: Write down all the services or products your business offers.

✅️ Analyze Performance: Look at which of these services or products are performing the best in terms of sales, customer satisfaction, and profitability.

✅️ Gather Feedback: Ask your customers and employees what they believe your business does best.

✅️ Rely on SWOT: Use methods like SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) to gain a clearer picture of your core competencies.

➤ Streamline Operations

Once you’ve identified your core competencies, it’s time to streamline your operations around these strengths. This means eliminating inefficiencies and focusing your resources where they matter most.

Steps to Streamline Operations:

✅️ Map Out Processes: Document the processes involved in delivering your core services or products.

✅️ Identify Bottlenecks: Look for steps that slow down your operations or add unnecessary complexity.

✅️ Simplify and Automate: Simplify processes wherever possible and use automation tools and project management tools like Asana or Trello to handle repetitive tasks.

4. Innovate and Adapt

Use this challenging time to think outside the box and adapt to the new normal. Whether it’s offering new products, services, or ways of delivering them, innovation can be a lifesaver.

Engage your team in intense brainstorming sessions. Let them shoot their viewpoints and ideas. Sometimes, the best ideas come from stressful periods.

➤ Steps to Innovate Within Core Areas:

✅️ Gather Ideas: Encourage your team to brainstorm ideas for improving your core products or services.

✅️ Test and Iterate: Implement small-scale tests of new ideas and gather feedback to refine them.

✅️ Expand Offerings: Once you’ve validated improvements, roll them out more broadly to enhance your core offerings.

5. Seek Support and Advice

One of the smartest moves you can make during tough times is to reach out for support and advice. 

Surrounding yourself with the right people can provide new perspectives, solutions, and sometimes just the reassurance that you’re not in this alone.

➤ Find Your Tribe: Mentors, Advisors, and Industry Peers

No one understands the trials and tribulations of running a business quite like other business owners and industry experts. These folks have been through the wringer, just like you, and they’ve got the scars (and wisdom) to prove it. 

Here’s how to tap into community powerhouse:

✅️ Identify Potential Mentors: Look for experienced business owners or industry leaders who you admire. Reach out and build a relationship with them.

✅️ Join Business Forums: Online forums like Reddit’s r/entrepreneur or specialized forums related to your industry can be gold mines for advice and support.

✅️ Attend Webinars and Workshops: These events are not just for learning; they’re also great for networking. Engage with speakers and fellow attendees to build your network.

✅️ Leverage Social Media: Platforms like LinkedIn are excellent for connecting with industry peers and potential mentors.

6. Take Care of Your Mental Health

Now, let’s talk about something that doesn’t get nearly enough attention: your mental health. Running a business, especially in tough times, can be incredibly stressful.

Stress and anxiety can cloud your judgment, affect your decision-making, and ultimately lead to burnout. 

You need to recognize and monitor all the signs that hint that you’re under too much stress.

Common signs include constant worry, irritability, trouble sleeping, and feeling overwhelmed.

Key Ways to Recognize and Reduce Stress:

✅️ Monitor Your Mood: Keep track of how you’re feeling daily. Mood tracking apps like Daylio can help.

Also, take regular breaks and give yourself permission to step away from work. Sometimes, a little distance can provide much-needed perspective.

✅️ Listen to Your Body: Physical symptoms like headaches, muscle tension, and fatigue can be indicators of stress. Meditate or take long walks if you feel these symptoms.

Practices like mindfulness and meditation can help reduce stress and improve focus. Apps like Headspace or Calm can guide you through.

✅️ Don’t Hesitate to Ask For Help: Sometimes, those close to you (family, friends, employees) can spot stress before you do. Be open to their observations.

✅️ Practice Self-Care: Self-care isn’t just about spa days and bubble baths (though those can be nice!). It’s about finding activities that help you relax and recharge. Create a daily routine that includes time for exercise, hobbies, and relaxation.

✅️ Seek Professional Help: Sometimes, self-care and support from friends and family aren’t enough. There’s absolutely no shame in seeking professional help.

Look for a licensed therapist who specializes in stress and anxiety. Many offer virtual sessions, making it easier to fit into your schedule.

✅️ Delegate Responsibilities: You don’t have to carry the weight of the world on your shoulders. Delegating responsibilities can lighten your load and help you focus on what matters most.

List out your daily tasks and identify which ones can be handled by someone else.

But make sure to assign tasks to team members based on their strengths and expertise.

7. Keep the Supply Chain Intact

Your suppliers are an essential part of your business operations. Maintaining good relationships with them is crucial, especially when times are tough.

Just like with your employees and customers, transparency is key with your suppliers.

Let them know if you’re experiencing difficulties and work together to find solutions. 

If you’re struggling to make payments, don’t hesitate to negotiate terms with your suppliers.

Many are willing to extend payment deadlines or offer discounts if you’re honest about your situation.

So, schedule regular check-ins with your key suppliers to discuss any issues and explore ways to support each other.

8. Keep Your Market Position Intact

Tough times can shake up your market position, but with the right strategies, you can still stay ahead of the competition.

Here are a few ways to remain competitive even in the challenging phase.

✅️ Leverage Your Unique Selling Proposition (USP)

Your USP is what sets you apart from the competition. Make sure it’s clear, compelling, and communicated effectively to your target audience.

Even here, you can lean on SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) to identify areas where you can capitalize on your strengths and mitigate your weaknesses.

✅️ Invest in Marketing and Branding

Even during tough times, it’s important to invest in marketing and branding. A strong brand can attract new customers and retain existing ones.

Focus on digital marketing strategies like content marketing, social media, and email marketing to reach your audience cost-effectively.

✅️ Adapt to Market Changes

Stay agile and be ready to adapt to changes in the market based on new trends. This could involve pivoting your business model, exploring new revenue streams, or targeting new customer segments.

9. Maintain Your Taxes

We get it: taxes are no one’s favorite topic. And during tough times, it might be tempting to push taxes to the back burner.

Ignoring taxes can lead to even bigger headaches down the road. 

Here’s how to stay on top of your tax game without losing your sanity.

➤  Stay Organized and Up-to-Date

The key to managing your taxes efficiently is organization. Make sure your financial records are in order and stay on top of tax deadlines.

Now, this might sound like a no-brainer, but when stress levels are high, it’s easy to let things slip through the cracks. 

So, consult with a tax professional to ensure you’re not falling into the traps of penalties and, at the same time, maximizing your deductions and credits.

Plus, look for an accountant or tax advisor with experience in your core industry and a solid reputation in the market.

➤  Consider Payment Plans

If you’re struggling to pay your taxes, don’t panic. The IRS and state tax authorities offer payment plans to help you manage your tax debt without losing your mind.

Reach out to the IRS or your state tax authority to discuss payment plan options. Be honest about your financial situation so they can adjust your payment plan accordingly.

Resources and Tools: Your Business Survival Toolkit

Navigating tough times requires not just strategy but also the right tools.

Think of these tools as your business’s Swiss Army knife — each one tailored to help you tackle specific business challenges.

➤ Financial Management Tools

These tools can help you keep track of your income, expenses, and overall financial health.

QuickBooks: A comprehensive accounting software for small businesses that helps you manage invoices, track expenses, and generate financial reports.

Xero: An online accounting software that offers real-time financial insights, making it easier to stay on top of your business’s finances.

FreshBooks: A user-friendly accounting software designed for small business owners, known for its intuitive interface and robust features.

Gusto: A payroll and benefits software that makes it easy to manage your team’s salaries, benefits, and taxes. 

doola: A business formation and bookkeeping platform that helps startups and small businesses with incorporation, banking, and bookkeeping.

It’s an all-in-one solution for setting up and running your business, ensuring you stay compliant and financially sound.

➤ Customer Relationship Management (CRM) Systems

Building and maintaining strong relationships with your customers is more important than ever in difficult times. CRM systems help you manage these relationships effectively.

Salesforce: A powerful CRM platform that helps businesses manage customer relationships, streamline processes, and improve profitability.

HubSpot: A CRM software that offers a wide range of marketing, sales, and customer service tools, perfect for growing businesses.

Zoho CRM: A cost-effective CRM solution for small and medium-sized businesses, offering a range of features to manage sales, marketing, and support.

➤ Marketing and Branding Tools

Your marketing efforts shouldn’t stop just because times are tough. These tools can help you create and manage your marketing campaigns efficiently.

Canva: A graphic design tool that makes it easy to create professional-looking images and social media posts, even if you’re not a designer.

Hootsuite: A social media management platform that helps businesses manage and schedule their social media posts, track performance, and engage with followers.

Mailchimp: An email marketing service that allows businesses to create and send email campaigns, track their performance, and automate follow-ups.

doola Is Here to Support You Every Step of the Way

Tough times can feel like you’re walking through a storm with no umbrella. Bills are piling up, cash flow is tighter, and it feels like there’s no end in sight. 

But you don’t have to weather this storm alone. Sometimes, having the right tools and support can make all the difference.

Streamlining Financial Management

One of the biggest headaches during tough times is keeping your finances in shape. That’s where we come in. We take care of your bookkeeping, making sure everything is organized and up-to-date. 

When every penny counts, having clear and accurate financial records can help you make the best decisions and avoid costly mistakes.

Incorporation and Legal Support

Thinking about restructuring or starting something new during these challenging times? We’re here to help with incorporation and legal support.

We’ll guide you through the process, making it less daunting and more manageable.

Easy Banking Solutions

Managing your business bank accounts shouldn’t feel like solving a puzzle. We simplify banking by helping you set up and manage your accounts efficiently.

Expert Tax Advice When You Need It Most

We provide strategic tax planning to help you make informed decisions that benefit your business in the long run.

Also, in the rare event of an audit, our CPAs provide the support you need to navigate the process smoothly. We’ve got your back, ensuring you’re prepared and protected.

Keep pushing forward. Better days are ahead.

If you want to know more about how we can help, book a free consultation today. Let’s keep the stress at bay together.