It is now official that 2024 is behind
us for all good reasons you can think of considering how difficult it was, to
many businesses and people at an individual level.
It is the hope of many people that
2025 will be a year of great opportunities where businesses will blossom and in
particular, small businesses will stabilize and find the much-needed impetus to
be self-reliant.
However, nothing is ever guaranteed and businesses at all levels must be ready for any shocks that may arise due to many unpredictable factors.
Entrepreneurs will be looking into 2025 with a sharp focus on
Finance Bill 2025 this
is because the country’s taxation measures remain unpredictable.
This is why small businesses need to prepare for any eventuality because, at the end of the day, we are going to have new taxation measures reviewed upwards and some downwards.
The good news is that small businesses can always thrive in a bad
economy but it depends on the business and how it is structured, which line of
business it is in, and if that business can make necessary
adjustments to retain profit or simply stay open.
The key point to note is that every
business is different, which means there is no set playbook to follow for
survival.
People tend to attack the most obvious immediate problems with vigour and without hesitation. That’s understandable and might make good business sense in some situations.
However,
it is also advisable to step back and look at the big picture to see what is
still working and what might need changing. It’s an opportunity to better comprehend the size and scope of
existing problems as well as further understand your
company’s business model—and determine how its strengths and weaknesses
come into play.
Spending money wisely is key to running a successful business.
However, that doesn't necessarily mean that
spending the least amount possible is always the best option.
Employees are a good example. Now and then business owners should conduct a thorough review of the staff—both when a problem arises and during the normal course of business—to make sure the right people are on board and doing their jobs effectively.
Both small business owners and large corporations tend to be penny-wise and pound-foolish when they hire the least expensive workers. Sometimes the productivity of those workers may be suspect.
Hiring one worker who costs 20 per cent more than the average worker but works 40 per cent more effectively makes sense, particularly during periods of crisis.
By
constantly seeking resumes and interviews with new people, business owners can
make changes to staff when needed to increase efficiency.
Small business owners should take steps to ensure that the company has access to cash, particularly in periods of crisis.
Visiting a bank loan officer and understanding what’s required to obtain a loan is a good first step, as is opening a line of credit in advance to fund possible short-term cash-flow problems.
Establishing
a good relationship with a banker is always useful for a small business.
Small business owners should have other potential sources of capital lined up as well. This might include tapping into savings, liquidating stock holdings, or borrowing from family members.
A small business owner must have access to
capital or have a creative way to obtain funds to make it through
tough times.
We must do everything possible to make
our businesses thrive and grow in 2025 and beyond.