Agility by Management, 8 Requisite Business Survival Options for ‘23

Ibach, Switzerland 02.02.2020 - opened red Swiss Army knife Victorinox

If management is mentally agile, periods of economic instability can create opportunities for small business owners

 The past three years have offered such opportunities to a variety of businesses. What is needed is qualified management that is willing to take some risks to retain its customers while simultaneously considering appropriate expansion possibilities, and keeping an eye on profit margins. Fortunately, small to medium size enterprises with good management can adapt more readily than large corporations. Many have succeeded,

Management should analyze the company’s revenues and expenses , and consider what operational changes could be effective without incurring major costs. A company might have to consider changes in the products or services offered, evaluate vendor relationships, employee policies, marketing strategies, and financial procedures. Logical decisions should be followed by rapid execution in times of uncertainty.

Every company has distinctive needs. I am happy to share the knowledge I have gleaned in my role as a financial consultant to South Florida. Some of the techniques that have worked for other companies may serve as options that might be considered by your company, in your market.

Here are eight best practice survival options for small business owners:

  1.     Creating an online marketing platform for existing and potential customers
  2.     Diversification of products to attract new customers and reduce the cost of goods
  3.     Reduction of the cost of goods and/or services from local vendors
  4.     Retention of employees by offering increased wages and benefits
  5.     Eliminating unnecessary overhead expenses
  6.     Reviewing financial statements monthly rather than quarterly
  7.     Maintaining acceptable credit scores to assure easy access to working capital
  8.    And, expanding working hours to accomplish the above referenced adjustments

Companies that have long term market recognition, have maintained limited inventory, and have retained adequate capital reserves, can adapt more readily than newer companies with limited cash and a need to access new customers while reducing COGs.  Nevertheless, all the companies that have survived have recognized the need to adapt in their market. They were agile.

Food Related Businesses

I have worked with many business owners in the food industry and witnessed many successful adaptations in the past three years.

Some specific examples are:

  •     Reducing the number of items on a menu to reduce inventory costs
  •     Altering products and services to address health and wellness concerns
  •     Reducing hours of service, thus reducing payroll costs
  •     Providing at home deliveries to customers
  •     Offering catering services for holidays and special events
  •     Packaging foods to retain freshness
  •     Increasing prices to retain profit margins.
  •    Offering bulk discounts to major customers
  •    Addressing the consumers recent interest in “farm to table” products
  •   Considering retirement – selling the assets of a business to a 3rd party

There are many entrepreneurs who want to open restaurants, catering facilities and other operations that require full kitchen build-outs. These companies prefer real estates that has been  improved with kitchens that meet local compliance standards. As a result, many long-time restaurant operators who are considering retirement now have buyers for their businesses and/or their assets. Even if they had economic setback during the last three years, they can sell their hard assets to a franchisee or a solo entrepreneur with a dream.

Many Lenders Have Altered their Perspective

In the past many lenders considered restaurants and other food and beverage facilities such as nightclubs, bistros and non-franchised food operations risky investments. Currently many lenders acknowledge that many food operations have been profitable, despite the impact of the pandemic on other industries. Both Bosses and employees are working from their homes and like to socialize during their non-working hours. In South Florida many restaurants offer outdoor service. Therefore, many banks currently have a greater interest in food related businesses than they did five years ago.

Institutional lending rates are currently higher than they were a year ago, but food operators that are doing well will qualify for bank loans. Most lenders want to see that the business has been operating for not less than one year and the borrowers/guarantors have an acceptable personal FICO score to qualify for an SBA 7A loan. Every small business owner should maintain a relationship with a loan officer at a commercial bank or a savings and loan that is a preferred SBAS lender. Most successful operation need working capital to cover high operating costs and having up to date financial statements will help shorten the time required for loan approval. Each lender has different underwriting criteria, so sometimes you have to shop for the best loan terms. Good luck.

Related content:

Planning Is Core To Small Business Success

How to Deal with 7 Small Business Challenges and Setbacks

Latin Biz Today Panel Explores the Restaurant Industry’s Survival- Part 2


Your Brand Is Not What You Think It Is…

Your Brand Is Not What You Think It Is…

Let’s talk about FEELINGS... If you look at today’s marketing and business headlines, there is a lot of chatter about BIG data and AI - it’s everywhere. This compelled me to recently tweet the following “It’s all about BIG data these days but we must never forget the...

Go From Mundane to Marvelous: Cultivating Joy in Your Job

Go From Mundane to Marvelous: Cultivating Joy in Your Job

Everyone is realizing that doing something they love for a living is becoming a necessity for their soul. When I graduated from high school, I wanted to become a psychologist, but I had to put my dream on hold and start working full-time to pay for college. I applied...

Gratitude- 5 Steps To A Sincere “Thank You”

Gratitude- 5 Steps To A Sincere “Thank You”

Gratitude can improve your business and add much, much more to your life. The simple act of saying "Thank you" typically conveys a sense of gratitude. But it must be genuine to be truly effective. And a dynamic "Thank you" is much more effective than a static one. So,...

Video Gallery


Sign Up for the Latin Biz Today Newsletter

PR Newswire

Featured Authors

Innovation & Strategy





Mi Mamá Es Una Brava

Mi Mamá Es Una Brava

She was fierce, unapologetic, unselfish and brava. Editor's note: This is a reprise piece from Gaby Alcantara Diaz remembering her late parents and brother.   Over 21.2 million (all) immigrant women reside in the United States since 2013 with many traveling by foot,...


Mi Mamá Es Una Brava

Mi Mamá Es Una Brava

She was fierce, unapologetic, unselfish and brava. Editor's note: This is a reprise piece from Gaby Alcantara Diaz remembering her late parents and brother.   Over 21.2 million (all) immigrant women reside in the United States since 2013 with many traveling by foot,...





Chiefs Repeat, Closer to (but Not yet), a Dynasty [Video]

Chiefs Repeat, Closer to (but Not yet), a Dynasty [Video]

A 360 recap of Super Bowl LVIII Latin Biz Today advisory board member & Sports lead and two of his sports management students weigh in on Super Bowl LVIII The Aftermath  It’s hard to put into words why anybody would be shooting at a Super Bowl parade and killing...

Work & Life


Health & Fitness

Travel & Destinations

Personal Blogs

Pin It on Pinterest