Your superpower as a solopreneur is your ability to make changes — big or small–to your business when you see fit. You don’t have to defend your vision to management or rally staff to adjust gracefully. You’re a one-person show. You’re nimble, and that’s good.
Staying nimble can help small businesses weather economic storms like extended periods of inflation. You can’t control global and domestic headwinds buffeting the economy, but as captain of your ship, you can protect your livelihood from a storm. Here’s how.
Monitor cash flow at all times.
Small businesses run on small budgets, making cash flow — how much money is coming in minus how much is going out — a primary indicator of overall business health. One prolonged streak of inflation-era expenses outpacing revenues can limit your ability to grow your business in the foreseeable future, and it could jeopardize your business continuing at all.
Avoid unpleasant surprises by tracking cash flow very closely. Don’t be tempted to think your business is too small to need big-name software programs. Ask your network of fellow solopreneurs to recommend user-friendly accounting programs that help them plan, budget, and forecast successfully.
You’ll look at your numbers daily, so test different software products. Ensure important cash flow indicators are easy to access and understand before investing time and money in a “solution” that doesn’t turn out to be one.
It’s always the right time to reduce expenses.
Take a thorough look at the business expenses you enter into your software program. Eliminate any that aren’t essential, especially recurring ones. Negotiate lower monthly fees with vendors. Another way to reduce your software costs is to use startup promo codes such as those that FounderPass provides businesses.
If you’re leasing storage space that’s rarely more than half-filled, an office that’s little used, or a vehicle that’s more for show than anything else, cut your expenses by cutting them loose.
Reducing expenses isn’t about ending spending. Investing in tools–like accounting software or a productivity-boosting inbox-management service–that make your business operate more efficiently is money well spent.
Think of tightening up expenses as cleaning your home. You don’t need to wait until spring (or inflationary times) to put things in order.
Save time to save money.
As a self-directed businessperson, you know that wasted time is wasted money. Yours might be the only pair of hands available when you could use help, so consider the benefits of automation.
For solopreneurs, automation means software. Automating invoicing is an excellent lever for boosting positive cash flow. Get the cash you’re owed as soon as you can. Make late invoicing a thing of the past.
Quick: How long would it take to sort through the messages in your inbox right now, separating the important from the interesting, from the unnecessary to the unwelcome? You don’t need to pay an assistant to get your head above water. If you’re overwhelmed by the absurd volume of email flooding your inbox daily, check out SaneBox.
Apart from automation, allot yourself precise amounts of time to focus on specific tasks. Set deadlines and stick to them. It’s all too easy to let a lack of focus or distractions drain away time that you’d rather spend with family and friends.
If you don’t mind your business, who will?
Temperamental economic conditions make solopreneurship exceptionally challenging. As the captain of your ship, it’s up to you to navigate skillfully and safely through unpredictable and sometimes unfavorable circumstances.
With the shadow of inflation hanging over businesses of all sizes, small business owners should take advantage of powerful tools to help them withstand rough seas and continue towards brighter horizons.