10 Must-Dos for Entrepreneurs going into a Shift
Earlier this week I wrote 6 tips for anyone in down economic cycles, today I’m following that up with tips for entrepreneurs going into a down cycle. Heads up business owners, this is for you!
- Cut your expenses by 10-20%. Now. Make two lists, things you will cut immediately, and things you could cut if the going gets rough.
- Grow your client list. Assume 20-30% of them fall off. Make up that difference now.
- Consider securing a business line of credit. You can get one when you don’t need one. You won’t be able to if you do.
- Now might be a good time to maximize your retirement and tax vehicles. That is long term money in the market and the recent tax changes were significant.
- Speaking of taxes, check with your CPA about your entity status. You may need to reconfigure your entity type. At very minimum, have a conversation with your CPA now about where you stand with your tax liability for 2018. Don’t wait until spring of 2019 and get surprised. This is a good tip every year but particularly critical during the down cycle.
- Interrogate the reality of your business model in a downward economic cycle. I’m concerned that there are a lot of online digital marketing agencies that are getting paid big bucks to manage Instagram accounts. Mark my words, most of that will dry up in a shift and a lot of people who are talking big right now, will be eating crow in 12-36 months.
- Be ready to take market share from your competitors. Are your systems ready? Is your team trained? It’s game time during a shift, are you ready to play to win?
- Double down on training. Skills and service matter more than ever in a shift.
- Operate now as if you’re in bottom of the down cycle. Always operate as if you’re in the next cycle, not the one you’re in.
- Stay positive. This is a time to clean up your business and take advantage of opportunity. Keep your head in the game and get a coach if you tend to worry. That will only hold you back from taking advantage of what can be the best next 36 months you’ve ever had.