27 Oct Business Tips to Help You Survive During Economic Slowdown
Business tips to help you survive recession
While some business owners believe the recession is over and their businesses are surviving, they are wrong. We’ve all heard at least a couple times over the last years that the global economy is on the rise again, but we fail to see it happening. Recent news make all of us believe this recession is going to take a lot more than predicted, and although you might be seeing a small increase in your business revenue, you’ll have to keep a sharp eye on things.
As a small business owner, you are forced to take drastic measures in order for your business to survive during such a deep economic slowdown. Here are some business tips to help you with that.
Business tips for survival
- Don’t panic. Yes, there are moments when you think you’ve hit a wall and there is no way around it. Don’t let that get to you. Put it aside until you are calm enough to deal with it. Rushing decisions will probably make the situation worse than it is.
- Audit your expenses and cut unnecessary costs. Take some time to make an inventory of everything that costs you money. Then cut out unnecessary expenses.
- Don’t lower your prices unless you lower the level of work involved in the product you are selling. This is one temptation to avoid, lowering prices in an attempt to drive more demand. This technique is not sustainable in the long run and should only be used as a last resort.
- Examine your supply chain and ask for discounts wherever possible. Some of your providers might be in a bigger mess than you so they might give you discounts.
- Don’t cut advertising. A recession is not the best time to cut your advertising costs. Still, there might be ways to lower your costs without limiting your reach but it isn’t the easiest thing to do.
- Don’t set unrealistic goals for your business. Instead, set short term, achievable goals and take the time to enjoy the accomplishments.
- Stop wasting your time on tasks you hate. The best way to use your time is to do the tasks you like doing as this is where you’re the most productive. Hire another person to do the tasks you hate.
- Your internet presence is important. Internet sales are rising due to diversified offers and lower shipping expenses. It is that time when you should hire someone to help you with your marketing efforts and establish a well-known online presence.
- Train your employees. While this might come at a cost, it is well worth the investment as your employees will be more productive. Another good idea is to cross train your employees so in case one of them won’t show up at work one of the colleagues will be fully trained to do his job and save the day.
- Diversify your products. If you see there is a need on the market and you think you can supply the right product then do it.
- Focus on quality and excellent customer service. This is what wins in the long run so stick to it.
- Expand your business globally. The internet can take your business anywhere and you are able to sell your products globally. Consider having your website translated and localized to specific markets in order to increase your reach.
While some of the above business tips to survive recession might be quite common, people tend to delay taking such measures. If you haven’t taken the above steps to fine tune your business, do it now!