The last few weeks have been brutal, to say the least. Between the Covid-19 pandemic and the strain it’s placed on the economy, business owners and employees alike are beginning to worry about how this affects their livelihood, remembering the bad times 2008 brought. Even though we are presented with unique challenges that we don’t believe anyone has seen before, there are also a lot of opportunities. Economic downturns and pandemics don’t affect every industry the same. Here are 3 things you could do to help your business get through a recession.
Re-evaluate your Financials
Laying off employees is the last thing companies should resort to in times of financial hardship. Instead, you can try to:
- Assess your current software/tech stack and see if there are more affordable solutions that meet your needs.
- Contact your current software providers and see if they offer any relief in the form of waiving payments, etc. (They usually do.)
- Stick with the essentials. If it’s convenient but unnecessary, get rid of it! Every dollar should be going towards efforts that sustain your employees and bring in more business.
Diversify your Customer Base
Don’t stop looking for new clients! If you rely on a few sole customers to keep your business operating, you’re in trouble. Focus on re-distributing the weight of those huge clients to others so that if you do lose 1-2 of them, your revenue doesn’t take such a huge hit and your business doesn’t tank. Now’s the time to really dig into paid ads and generate new business via online efforts. Research your competitors and find out where your targeted audience is spending most of their time. If this is too much for your current team to handle, hire a marketing agency. They can be a lot more affordable than paying someone a salary and you usually get a lot more value/ROI from them!
It’s important to broaden your selections of goods or services. Don’t keep relying on your previous line-up, especially if your sales seem to be slowing down. Innovate and adapt. You may be one product/service away from tapping into new revenue streams. In fact, you might not even have to create a new product or service if you can repurpose the ones you currently have and make them relevant to the current circumstances. (Lemons into lemonade.)
Preparation is key when a recession hits. Don’t let your business fail because you couldn’t think outside of the box and keep pushing forward. Too many people allow themselves to be backed into a corner and continue to do the same thing, over and over until their business collapses on itself. Strategize and aim for growth, even when the odds are against you.