The recession of 2008-09 might have befallen us nearly a decade ago, but it’s still a painful memory for several business owners. More recently, the drop in oil prices has prompted a slowdown in producing zones that have hurt entrepreneurs.
Apart from the economic recession, there might be other reasons for business in a recession as well. Decreased sales and declines in consumer confidence can endanger all companies, but small businesses can be especially unsafe. They usually don’t have reserve resources to support them to weather tough times.
By safeguarding your cash flow to developing a new customer base, implementing some practices in advance might transform your business into a recession-proof well-oiled machine. Hence, it sustains and even flourishes during the economic downfall.
Here are eight ways how ONPASSIVE eco-system can help you build a recession-proof company of your own.
- Offer new products and services
It’s quite simple for entrepreneurs to get comfortable with the products or services that have been prosperous for them in the past. Still, expanding your line-up might be crucial for surviving through the next recession.
In fact, you might not even have to come up with something entirely new. Instead, you may be able to repurpose your products or services for another market. For instance, manufactured products used in the oil and gas sector could be productive in other areas with just a few modifications.
- Protect Your Cash Flow
Cash flow is the heartbeat of your company. Money must be continuously inflowing and outflowing for maximum business health, with the apparent goal of inventing more income channels than spendings on your expenses. One thing is for sure that you’ll have expenditures as long as your business exists.
- Grow your customer base
It’s hard to emphasize the significance of improving the number of customers you have. As per the study, almost one in six well-established companies has encountered financial challenges for losing a single client.
- Double-check your inventory management processes
Though doing things the same way for several years may seem convenient, but it isn’t necessarily cost-effective. While you’re analyzing your receivables, spend time reviewing your inventory approaches.
Are you ordering unnecessary quantities of particular items? Can you perhaps buy specific products at a lower price from other vendors? There are multiple ways to reduce costs, so don’t get stuck doing things one way because it’s what you’re used to doing.
- Win the Competition’s Customers
You must expand your customer/client base continuously if you want your business to sustain in difficult times. This involves bringing in customers from your competition. Offer something different or even more than what your competition does. Research about your competition and check what you can do to attract their customers and convert them into your customers.
- Never stop marketing your business
Irrespective of the economy, never stop promoting your business. If the consumers are not aware of your company, they simply can’t do business with you. The rise of social media presents you with an opportunity to stand yourself out from other companies by highlighting your superior product or exceptional customer service.
Analyze various paid marketing efforts as well as most budget-friendly ways – especially social media. An active Facebook page, an eye-catching Instagram profile, and a well-designed Twitter account offer excellent ways to attract customer attention without spending a lot of business capital.
- Make the Most of Current Customers
We all know the old saying of a bird in the hand is worth two in the bush. A bird in the hand is apparently your client, or customer and they’re an opportunity to generate more sales without bearing the expenses of finding new customers.
The key to it is excellent customer service. Make sure that your consumers love what you sell or do, and keep them satisfied. Yes, that indicates that the customer is always right. Recognize their requirements, and then fulfill them. You must retain their business at all costs. This is more valuable during a recession than at any other time.
- Keep your personal credit in great shape
You may do everything correctly and still end up in hardships because of unforeseen economic twists and turns. This requires you to take up loans to keep your business running, which is much simpler when you have a high credit score.
An uncertain economy makes it more challenging to secure capital funds, and small business loans are usually among the first funding channels to disappear. If you have excellent personal credit, it’s far more comfortable for you to borrow any funds required to keep your company afloat. Keep track of your credit score like a hawk, and do whatever is necessary to keep it in excellent shape.
Nothing has been invented that will guarantee 100% success for your business in a recession. But implementing these strategies and the AI-driven tools from ONPASSIVE can help make sure that your business sustains during the tough times and perhaps even reap profits from them.