With the global pandemic due to COVID-19, many experts are saying that we are already in a recession and are predicting that it could last as long as a year. Prepare now to recession-proof your business
6 Tips to Recession-Proof Your Business
1. Keep Marketing: When funds get low as they would in an economic recession, companies always let marketing go first. But, during a recession, marketing will serve a huge role. Customers aren’t actively searching for ways to spend their money, so hiding your brand during this time will have no benefits. Instead, take advantage of this popular way of thinking. Your industry competitors will most likely decrease ad and marketing spending, so by keeping yours consistent, your brand can gain more recognition.
If you must cut back on marketing, just reduce the marketing budget instead of eliminating it altogether. Pursue low-cost marketing techniques such as blogging, social media marketing, webinars, email marketing, and online newsletters. Our blog, ‘3 Low-Cost Ways to Grow Your Business’ goes into greater detail on these low-cost marketing techniques.
2. Train/Master Your Craft: A recession may cause you to feel as though you must offer more in order to better stand out against competitors. While diversifying your business can be beneficial, adding on a slew of new products or services just to try and seem more valuable isn’t always a good idea. Instead, focus on training your staff regularly in order to ensure that they are performing their tasks in the best manner possible and able to go beyond customer expectations. During a recession, every customer counts, and happy clients will put your company ahead of the competition.
3. Keep In Contact With Clients: In your never-ending search for new clients that can help grow your business, don’t lose sight of the individuals who are sure to do just that-your current and past customers. Past clients are already familiar with your company, and you know that your services and products can benefit them. Marketing to past clients is a low cost, and can actually make you money. Past clients who are satisfied with your business will tell their friends and families about their experience with you and drive more customers to your company.
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4. Prepare Before It Happens: In order to best recession-proof your business, you must prepare. Begin reviewing your monthly expenses and cash flow, and have a strategic financial plan. Determine where you can cut costs that will benefit your business without causing significant harm. Take a look at these additional tips to help your business prepare and recover from COVID-19.
5. Network: Before searching the internet or asking around for suggestions, people will always do business with people that they know and like. Make sure that your potential clients know who you are and what you do. A great way to do this is through social media marketing. LinkedIn allows you to connect with individuals and businesses. You can also regularly add to your profile to show up in their feed with helpful information that will allow them to keep your company in mind. If social media marketing is unclear to you, read our helpful social media marketing article, these tips will integrate well with any business.
6. Consider New Talent: During a recession, many talented individuals find themselves out of work. Consider adding new talent to your team as your applicant pool become full of highly eligible people. If you haven’t hired new talent in a while, read our article on hiring compassionate employees that best fit your business and core values.
Although it’s impossible to say exactly when the next recession will take place, or whether the coronavirus will have a major impact on the economy. But, it’s important to prepare your business now. While nothing can guarantee your business will make it through a recession, strategic planning with tips like the ones provided can help give your business a good chance.
Recession-proof your business now so that it has the best chance of surviving whatever the future may bring.