Worried that we might be heading for a new recession?
You’re not alone, but before you panic, it would be smart to take steps and do whatever you can to ensure that your business is as recession-proof as possible.
Here are a few tips that could help you with that:
#1 Ensure your cash flow is protected
Cash flow is often the first thing to suffer when a recession hits, so it makes sense to protect it as soon as you can. One of the easiest ways to do this is by looking at your expenses and seeing what you can do to cut them down. Getting rid of any superfluous outgoings will mean that you’re in at least a slightly better position when a recession hits than you otherwise would be.
Once you’ve done that, you can start to look at ways to boost your outgoings whether that be running a sale, developing a new and essential product, or improving your marketing efforts.
#2 Work out what you can offer
In a recession, people typically spend less and they tend to spend on only things that are essential and which meet an important need. If you want them to spend their money with you, you need to identify what it is your business can offer in terms of meeting needs.
For example, if you are an ac dc power supply manufacturer, you could point out the fact that your products can be used to generate backup power, which is a pretty essential need for many businesses and individuals or if you sell suits, you could point out that looking the part can help you get that new job you so desperately need.
Work out what it is you do that is important during times of recession and focus your marketing on that.
#3 Get rid of the unnecessary
If you’re a company that offers a wide range of products and services, it might be worth dropping some of the extras so you can focus on your most important products/services – the ones that will be in most demand during a recession.
By doing this, you can cut your operating costs while still making money. You can also focus on doing your core thing better, which will give you a much greater chance of competing successfully with the competition.
#4 Offer something different
On the other hand, another strategy that can work quite well for businesses during times of recession is offering something different – something that no one else is offering.
If you can come up with a unique idea, you won’t have any competition, which means that although you might not appeal to the mass market, you will have cornered your market and you should be able to make a profit, providing that is, that your idea is a good one that people will get behind.
#5 Sell to existing customers
It’s far cheaper to sell more to your existing customers than it is to find new ones, so focus your marketing efforts on current customers, offer them new incentives to buy and keep them happy if you want to keep afloat.
Hopefully, we won’t sink into another deep depression, but if we do, at least you’ll know what you need to do to beat the tide.