Here are some tips.
It is very important to start now with a good strategy to recession-proof your business.
All businesses fear recession, more so small businesses than large ones as the latter have more important financial shock absorbers at their disposal.
There are a few things to take into account to overcome the anxieties of a recession.
Below are some tips for small businesses to overcome economic difficulties in a suitable way
In this time of recession it is very important to emphasise the main product or service, the one that companies are really good at, their strong point.
It can also happen that you have to change the path as the risks can most often bring greater benefits. The review is not one of those moments and you have to take that into account.
Companies must focus on the best performing products and services and spend on these, while trying to invest a little less in weaker products or services.
They need to highlight and promote the best products or services to all customers, whether current, past or potential customers.
A way has to be found to ensure multiple revenue streams and this can happen by promoting the main product or service. In times of difficulty, multiple revenue streams can provide more financial flexibility.
In order to increase revenue streams, one idea would be to make several versions of a service they already offer, which could have VIP and cheap versions. A high idea would be to provide subscriptions with additional benefits for automatic renewal.
Keep on marketing
During a recession, companies must remain at the centre of customers’ attention, especially because these times are stressful for everyone
Businesses should take their business online by providing funds for marketing and do everything they can to stay in customers’ attention.
Here are some tips:
1. Keep customers connected by sending them regular e-mails.
2. Try to repurchase customers with whom you have not been in contact for some time by making them offers or placing retargeting ads to repurchase them
3. Publish constantly on social media
The main idea is to do everything possible to make your customers and potential customers forget about you.
Cash flow protection
Cash-flow protection is primarily linked to proper planning of a company’s income and expenditure.
These are some pointers to protecting cash flow:
1. Try to reduce expenditure that is not necessary. You have to do an audit to see which services or resources are not needed. It is very important to keep an eye on how every penny is spent.
2. Renegotiate contracts by trying to get the most favourable terms. You can change the terms of the contract, ask if they can give you a more competitive price or more flexible payment terms or a discount for cash or advance payments. It is best to ask if there may be variations that work for you.
3. Be interested in receiving financial assistance. Try to obtain small business loans in order to cope with possible bankruptcy and to be able to survive. U list the best small business loans and visit the Small Business Administration to learn about their financing programmes.
Also, make sure you understand your cash flow situation. If you do not have a solid grasp of the numbers, you will not know how best to protect yourself.
Invest in customers
It is very important to do what you can to keep the customers you already have as it costs less than trying to find new ones. It applies both in difficult times and in the best ones.
During a recession it is difficult to try to get new customers to try when everyone is trying to spend less. Investing in the customers you already have is therefore essential. Investing in them means investing in relationships with them, and this is very important when we have difficult times together, in this way we build customer loyalty for a lifetime.
If you don’t know how to get started, first of all you need to know which problems your customers feel the most by trying to make them understand that solving these problems is your priority.
In times of crisis, especially when you are preparing for a recession or you are in a recession now, it is very important to delegate.
For the leader, time is one of the most precious resources for the company.
You need to evaluate the tasks and see which ones can be delegated to other employees and see if it is possible to automate some tasks that are repetitive more efficiently.
It is also necessary to remove any activity that produces little financial gain.
A recession is not the end of a small business even though it can be a difficult time. We must not give up and do everything possible to overcome all difficulties.