Clarify the Problem

• Before you can identify a solution, first clarify the challenge. Take some time to think about how you got to where you currently are.
• What happened that you didn’t anticipate? Some common problems businesses face are:
  • Market changes
  • Failure to understand the target customer or market
  • Poor pricing strategy
  • Insufficient funds
  • Too much growth
• If you want your business to thrive during challenging times, you must be able to put your finger on the primary challenges. If you’re feeling sick and go to the doctor, what’s the first thing they try to do? Determine what is causing the illness. The same principle is true in business.

Focus on Your Customers

• What is at the heart of every business, including yours? Customers. If you don’t have customers, you don’t have a business. When deciding what actions to take to strengthen your business, always keep your customers front and center.
• Before making changes, consider how they will affect the customer experience. If customer experience is one of your key competitive advantages, be especially careful about changes
• If you do make changes that will directly affect the customer, communicate those clearly. Explain to the customer why you have to make the changes and the outcomes you expect.
• During times of global crisis, it’s imperative to keep the focus on customers. People will remember the actions you take. If you seek to serve your customers, you’ll build up a huge amount of goodwill even at the expense of profit.

Conduct a SWOT Analysis

• If you want to succeed as a small business owner, you must be willing to honestly evaluate how things are going.
• A SWOT (strengths, weaknesses, opportunities, threats) analysis provides you with a framework for analyzing your business.
  • These are the things you have control over and are working well in your business. Focus on and try to develop these areas further.
  • These are the things that aren’t working well in your business. Your goal is to change or eliminate these things to continue to damage your business.
  • These are external factors that have the potential to benefit your business. The more you can capitalize on these opportunities, the more success you’ll have.
  • These are external factors that could possibly hurt your business. Avoid these things or adapt to them.

• Performing a SWOT analysis is hard work. But this clear-headed analysis will help you overcome your weaknesses, capitalize on your strengths, and take advantage of unique opportunities.

Create Objectives and a Plan

• Once you’ve done a SWOT analysis, determine the objectives you’ll pursue and create a plan for achieving those objectives. This will give you the clarity you need to move forward.
• Start with your strengths. How will you double down on the things you’re already doing well? Then look at your weaknesses. How can you change, minimize, or even eliminate these areas?
• Move on to opportunities. Is there a new market you can move into? Can you implement a new technology that will help you be more efficient?
• Finish with threats. How will you avoid or adapt to those things that could hurt your business?
• Remember to create both objectives and a plan for how you’ll meet those objectives. Your objectives need to be:
  • You must be able to determine whether you’ve hit your objective.
  • Be realistic in your goal setting.
  • Set a specific date by which you’ll meet your objectives.

Reduce Costs

• If you want your business to survive and thrive during difficult times, you may need to reduce your costs. However, be careful and precise as you do this. Cut costs too much and your business may have a hard time recovering. Cut costs too little and you won’t free up enough cash to keep your business going.
• Start by cutting discretionary costs. These are costs that aren’t necessary to run your business. Business lunches are an excellent example of a discretionary cost. Next, look at ways you can reduce costs but still achieve the same outcomes. Can you reduce travel costs by using videoconferencing technology?
• Next, consider your office space costs. Your landlord may be willing to lower your rent or even create a new lease for you. If your landlord doesn’t reduce your rent, consider moving to a less expensive building.
• Also, take a close look at your supply chain. Some of your suppliers may be willing to give you discounts.
• At some point, you’ll need to think about reducing staffing costs. This is hard for every business owner. Before you lay people off, look for ways you can reduce employee hours or compensation. If a reduction in hours or compensation isn’t enough, you’ll have to reduce your workforce.