It’s no surprise that the pandemic has affected the economy as unemployment rates continue to soar and economic output has plunged these past few months. As a result, the U.S. has officially gone into recession, according to the National Bureau of Economic Research. The Better Business Bureau serving Central East Texas advises consumers to work toward becoming fiscally savvy during this uncertain season.
The recession is beyond our individual control. However, we can control our ability to be proactive when it comes to our finances so that we can survive and hopefully thrive as we move into the next year.
The BBB provides the following financial tips for businesses to navigate through this recession, and be proactive for other unexpected emergencies:
Cut back on non-essential expenses. Moving forward, consider cutting back on non-essential spending.
Create reserves. Just as the the recommended best practice is to create a six-month emergency fund for your personal expenses, it’s also a great idea to build up at least six months of reserves for your business. This will help keep your business from operating in “crisis mode” during unexpected rough financial patches and will help keep you focused on being proactive.
Look for additional sources of revenue. Is there a related (or even an unrelated) line of business that is thriving in which your company could also be a supplier or provider? Many companies are thriving because they were able to become innovative with their business model. This is a great opportunity to meet with your team to come up with some creative ideas on how to move forward in a strategic fashion.
Seek assistance. While the recommendation for personal expenses is to pay down debt, it may be a good idea to do the opposite for your business. Some experts recommend increasing your credit limit in order for you to have something to fall back on during these times. Speak with your bank and go to the SBA’s website for information on low-interest loans if you feel this is a good option for your business.
For more information on how to be a savvy business owner, go to bbb.org. To report fraudulent activity or unscrupulous business practices, please call 903-581-5704 or use BBB Scam Tracker.