Tough business periods are more survivable than most owners realize. Contrary to the "90% fail" myth, only 20.4% of businesses fail in their first year according to 2024 U.S. Bureau of Labor Statistics data cited by SCORE — meaning roughly 4 in 5 new businesses survive past year one. That said, according to the 2025 Small Business Credit Survey, rising costs of goods, services, and wages remain the top financial challenge for small businesses, with more than 4 in 10 firms also citing tariff-related increases as a real burden. For businesses across Sandy, Draper, South Jordan, and the rest of the South Valley, surviving a rough stretch isn't about luck — it's about moving deliberately when things get hard.
Analyze Your Financial Statements First
When cash feels tight, the instinct is to work harder or sell faster. Resist it. Your first move should be a clear-eyed look at your financial statements — specifically your profit and loss statement, cash flow statement, and balance sheet — to identify exactly what's broken.
Are margins eroding on a core product? Is a single client carrying too much revenue risk? Are receivables piling up while payables come due? You can't fix what you haven't located. A two-hour diagnostic can prevent two months of wrong decisions.
Eliminate Non-Essential Costs — Carefully
Once you know what's hurting, cut strategically. Preserving cash flow is the priority, and the number-one reason small businesses fail is running out of it — often because owners underestimate how long it takes to reach profitability. That's why experts consistently recommend holding 1–2 years of operating reserves as a buffer.
Start with subscriptions, underused tools, and discretionary line items. Delay non-urgent capital purchases. Be cautious about cutting staff — the cost of rehiring and retraining later often exceeds what you saved.
Streamline Operations to Do More With Less
Cost-cutting and efficiency aren't the same thing. Process streamlining means restructuring how work gets done to reduce waste without reducing output — and it can lower costs while improving productivity at the same time.
Walk through your core workflows and look for redundant steps, slow handoffs, or tasks that could be automated cheaply or for free. A South Valley service business spending hours on manual scheduling, invoicing, or follow-up is burning time that should go to customers. Small changes here compound quickly.
Consult an Advisor — It's More Accessible Than You Think
The assumption that outside help is too expensive trips up more business owners than it should. Free and low-cost counseling is available through the SBA's national network of resource partners — including SBDCs and SCORE mentors — specifically to help small businesses recover from hardship.
South Valley Chamber members also have access to relationships with major regional partners like Zions Bank and America First Credit Union, both of which regularly work with businesses navigating difficult periods. A smart outside perspective is often the catalyst that reveals the path forward.
Negotiate With Creditors and Vendors
Most business owners assume debt terms and supplier contracts are fixed. They aren't. Reach out directly to creditors and vendors and ask for modified terms — extended payment windows, reduced minimums, or temporary rate adjustments. Most would rather renegotiate than lose a client.
When renegotiating contracts, focus on aligning revised terms with your current cash position and realistic recovery timeline. Once both sides have agreed, you can sign PDF documents electronically using Adobe Acrobat's online tool, so all parties can finalize updated agreements without printing anything. After e-signing, you can securely share the completed PDF via email link or a password-protected file.
Focus on Low-Cost, High-Return Marketing
The pressure to cut marketing is understandable, but pulling back entirely accelerates the decline. The goal isn't to spend more — it's to spend smarter. Email newsletters, Google Business Profile updates, and consistent social content cost very little and keep your business visible.
For South Valley businesses, local visibility has an outsized impact. Participating in Chamber events, showing up at rotating city networking mixers in Herriman, Riverton, or Cottonwood Heights, or joining a committee keeps you in front of potential clients at almost no cost. These are exactly the kinds of low-overhead touchpoints that matter most when ad budgets are tight.
Maintain a Resilient Mindset and Steady Your Team
Research from UNC's Kenan Institute found that small-business resilience depends heavily on the owner's self-identity, belief in the venture, and access to a supportive entrepreneurial ecosystem — not financial resources alone. Your mindset and your team's morale are strategic assets, not soft concerns.
Be honest with your team about the challenges you're facing, but communicate a clear direction. Recognize contributions. Give people a sense of agency in the recovery. A motivated lean team consistently outperforms a demoralized fully-staffed one.
Tough times test every business eventually. The South Valley Chamber's Business Institute programs, Women in Business initiatives, and leadership development opportunities exist precisely because growth and resilience require ongoing investment — not just during crises, but before them. If you're in the middle of a difficult stretch right now, connect with the Chamber and tap into the network you've already built. You don't have to work through it alone.
