What Staying Afloat Means
Staying afloat is a saying that means a business is surviving but not growing much. The company is making just enough money to keep operating. Imagine a boat in the water that is not sinking but also not moving forward very fast. That’s kind of like a business that is staying afloat.
When a business stays afloat, it can pay its bills and workers monthly. But there usually isn’t much extra money left over. The owner likely can’t make significant investments to improve the business. They are focused on just getting by day-to-day. Staying afloat is better than going under, meaning the business fails and has to close. But it’s not a very good position for a company to be in for long. The goal is usually to grow and thrive, not just survive.
Why Businesses End Up Staying Afloat
There are several reasons a business might end up in this spot. Many new small businesses go through a phase of barely staying afloat before they get established. It takes time to get regular customers and make sales.
Staying afloat can also happen when:
- The cost of supplies or workers goes up, but the business can’t raise prices
- Sales slow down because fewer people are buying what the business sells
- New competitors show up and take away customers
- The owner borrows too much money and has significant debt payments
- There are unexpected expenses like extensive repairs or lawsuits
So, staying afloat can happen even to well-performing businesses. Sometimes, changes in the economy or industry can make things more complicated. Even good business owners can struggle to keep up when faced with challenges like this.
Challenges of Staying Afloat
When a business is just staying afloat, the owner faces many challenges and stress. Every day, they must figure out how to bring in enough money. There’s no room for mistakes or unexpected problems.
Hard to Plan Ahead
Planning for the future is hard when you’re worried about surviving the present. Owners of businesses that stay afloat often feel stuck in a hamster wheel. They are so busy trying to get through each week that they can’t step back and think about long-term changes.
Successful businesses must adapt and evolve as customer needs change. But trying new things is risky when you’re just scraping by. What if the changes don’t work and sales drop even more? When staying afloat, you tend to just stick with what you’re already doing. You hope that will be enough to keep things as they are.
Struggle to Compete
Thriving businesses have money to invest in marketing, better equipment, new products, and skilled workers. Businesses that are staying afloat can’t afford those things, so it becomes increasingly difficult for them to keep up with competitors.
Imagine two stores next to each other selling similar products. One has bright lighting, a well-designed website, and helpful salespeople. The other looks run down, has an old, clunky website, and has an owner who is stressed out and less patient with customers. Which one would you instead shop at? The weaker store will probably keep losing customers to the stronger competitor.
Ways to Avoid Just Staying Afloat
Of course, no business owner wants just to stay afloat forever. The goal is to get to where the business is growing, thriving, and having a bright future. Here are a few key things business owners can try to break out of just staying afloat:
Cut Costs
Reducing expenses can stop the bleeding when more money goes out than coming in. Take a hard look at every cost and see what can be cut back or eliminated. Negotiate lower rates with suppliers. See if there are cheaper alternatives for things like software or insurance. Be careful not to cut service quality or lose good workers. But trimming the fat can help the business get back on track.
Increase Revenue
Making more money is even better than cutting costs. Brainstorm ways to find more customers and get them to buy more. Can you raise prices a little without losing sales? Can you offer a new product or service that people want? Focus your marketing on your most profitable offerings. Even small increases in sales can make a big difference when things are tight.
Adapt to New Conditions
Sometimes, staying afloat happens because a business hasn’t changed. What worked before might not work now. A shop that only sells in-person may need to start selling online. A restaurant with big dine-in spaces may need to focus more on take-out and delivery. Adapting doesn’t mean changing everything at once. Start with small experiments and see what works.
Get Advice and Support
Business owners don’t have to figure it all out alone. There are many places to get advice, such as business coaches, financial advisors, industry groups, and business classes. Other business owners who have been through tough times can offer moral support and ideas. Sometimes, an outside perspective can see new solutions.
Staying afloat is stressful, but it doesn’t have to be permanent. By reducing costs, increasing sales, adapting, and getting support, businesses can start swimming forward again. It takes hard work, creativity, and patience, but many companies that once stayed afloat have managed to grow and thrive. The key is never to give up and never stop trying to improve.
