Small Business Finances

Small Business Finances During Economic or Seasonal Downturns

There are certain necessary expenses for a business to operate and these basic needs must be met. Unnecessary expenses should be reduced or eliminated when economic or seasonal downturns occur. Priority expenses include:

  1. Rent
  2. Utilities
  3. Phone service
  4. Salaries/taxes
  5. Supplies
  6. Equipment
  7. Transportation


During slow periods, whatever business comes in, complete the projects promptly. The tendency is to be lax in production. It is important to produce as quickly as possible and not overcharge. If the work is prompt and as economical as possible, customers and clients will feel important and return for more service. Repeat business is vital. Customers like to be the first person in line. Making them feel important keeps them satisfied and will bring them back.


Stay in contact with creditors. Make arrangements, if possible, for smaller payments. Most negative consequences can be avoided or postponed with regular contacts.


Start paying “COD” for supply orders. Charging supplies in slow times will create a balance in an account that builds and becomes difficult or impossible to pay for a small business. Smaller pays of cash-on-delivery can keep materials coming when they are needed.

Credit Cards

Credit cards are a convenience. In slow Business times, charging on credit cards will build a balance that cannot be paid. Contact credit card companies to work a deal that will freeze the card, but make smaller payments at less percentage of interest. Operate with cash instead of credit cards during a time of slow business.

Eliminate Unnecessary Expenses

It may be pleasant to have the concession delivery for the office, but this is an unnecessary expense. Coffee can be bought at the local supermarket cheaper than concession delivery. Look at business expenses and eliminate any unnecessary charges that do not add work to the business. Items of convenience may need to be reduced or removed for a period of time, until cash flow increases.

When seasonal or economic downturns for small business happens, be prepared to do what is necessary to meet business needs and always maintain a steady work flow ethic. Times change. Be prepared to be flexible in business expense matters.


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