Small businesses, especially ones just starting out, are vulnerable. When a recession hits, they’re the first to fall under the strain in most cases, mainly because they are not yet as established as businesses that have been around for longer. Declines in sales are one big result of consumers losing confidence in businesses, and the smallest ones often don’t have the reserves in place to weather the storm of recession.
You can’t really ‘recession-proof’ your company, but you can help your company to thrive when economic waters become turbulent. Tightening the business belt while thriving may seem like a concept that simply won’t work, but we’ve got some practices that you can work on implementing to make sure that your business is the one that survives.
Protect Your Cash! To be able to keep your business healthy, you need a good amount of cash to continue flowing. You can back yourself up with a credit line from https://businesslineof.credit, because no matter how tough the times get you need to have a good backup of cash! You will always have expenses, but these have to be as balanced as possible. You can read strategies to help you keep cash flowing here, so that even in a recession you can stay solvent.
Check Out The Inventory. In times of recession, you have to decide where you can cut costs and inventory is usually the first place you can do this. You want to be able to cut the cost without cutting the quality. The key is to shop around and try and do deals with the suppliers you’ve got. If you can’t, then you can search for new suppliers who offer the price you want.
Fight The Competition. In a recession, you need to be ruthless. What are your competitors offering that you aren’t? What is it that keeps their customers coming back for more? You need to expand your client base and to do this you need to offer something more than the competition does. Research what they’re doing and what they have in the pipeline, and see how you can do one better.
Look After Customers. Your customer base is going to be loyal to you if you give them reason to be. Start rolling out exclusive offers to existing customers and make them feel important. Their recommendations will bring in more business, even when times are tough. If you give them a reason to recommend you, you will be flush in profits, despite the belt tightening.
Hit Marketing Hard. The one part of your business you should never, ever cut during a tough economy, is marketing. You don’t have to spend out a lot of money on upping your marketing campaign, especially when social media is free for most! When things get hard in your industry, maximise your marketing campaign – you can bet other businesses will have made the mistake of cutting theirs!
You don’t have to worry about staying afloat if you have strategies in place to keep you there!
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