Business can not be booming at all times, there are times that the economic situation will be very tough. In times like this there will be some challenges and difficulties in taking your business to the next level.
The situation the economy is will determine the situation your business will be as well. If the economy is in recession, you should expect recess for your business as well and if the economy is growing then your business will grow as well.
Nevertheless, no matter how tough the economy situation is you can still make your business thrive and survive during this times by following these few steps.
1. Protect your cash flow.
Cash flow is the lifeblood of your business; to keep your small business healthy, cash needs to continue flowing through. Now no matter how tough times get, having cash flow out of your business will never be a problem.
As long as your business exists, you will have expenses. But the harder times get, the harder it can be to keep the cash flowing in.
2. Review your inventory management practices.
See what can be done to reduce inventory costs without sacrificing the quality of goods or inconveniencing customers. Are you ordering too many of particular items? Can an item be sourced somewhere else at a better price? Is there a drop-shipping alternative that will work for you, eliminating shipping and warehousing costs?
Just because you’ve always ordered something from a particular supplier or done things in a particular way doesn’t mean you have to keep doing them that way – especially when those other ways may save you money.
3. Develop and implement strategies to get your competition’s customers.
If your small business is going to prosper in tough times, you need to continue to expand your customer/client base – and that means drawing in customers from the competition.
How can you do this? By offering something more or something different than the competition does. Providing better customer service is often touted as one of the easiest ways to outdistance the competition.
4. Make the most of the customers/clients you have.
We’ve all heard the old adage that a bird in the hand is worth two in the bush. The bird in the hand is your customer or client and he or she is an opportunity to make more sales without incurring the costs of finding a new customer.
Even better, he or she might be a loyal customer, giving you many more sales opportunities. If you want to recession-proof your business, you can’t afford to ignore the potential profits of shifting your sales focus to include established customers.
5. Continue to market your business.
In lean times, many small businesses make the mistake of cutting their marketing budget to the bone or even eliminating it entirely. But lean times are exactly the times your small business most needs marketing.
Consumers are restless and looking to make changes in their buying decisions. You need to help them find your products and services and choose them rather than others by getting your name out there. So don’t quit marketing. In fact, if possible, step up your marketing efforts.