What everyone knows about business — booms and busts. From the beginning or when managing an existing company in the midst of the recession, there are ways to make your company recession-proof.
Keeping existing customers with customer loyalty schemes can be less expensive in an economic downturn than trying to attract new ones.
Diversify your offerings.
Industries that depend only on consumer transactions might suffer during a recession. You can offset this loss of sales by experimenting; if your retail frozen yogurt stand only sells frozen yogurt cones, you could sell wholesale through grocery stores and caterers. Further, reduce operating expenses to safeguard against the decrease in demand.
So begin by investing a percentage of your income every month into a cash savings account so you don’t have to resort to borrowing money in a recession, and also grab discounts on goods in the recession. And bind expenses to sales so you don’t run out of money completely.
Make customer retention investments.
During times of recession, it becomes very important that you have customer attraction and customer retention by providing discount or additional services, customer care, and loyalty program etc.
Maintaining existing customers is really the only way to recession proof your business, it’s cheaper to retain than gain them. Return customers also spend 67% more than new ones.
As a small company, it is imperative to tread carefully with recessionary moves; it feels imperative to reduce expenses immediately and only where necessary. What is more, they must remain strategic in tackling this issue because savings can bring extra unintended consequences that make the business stronger.
Be a market leader.
Although recessions aren’t predictive in the slightest, managing a recession is an effective way to build your company’s standing in its field. If you can keep your doors open even during a economic crisis and still service your clients, your brand will be able to earn their trust and increase their loyalty.
You’ll be an industry leader in your space, if you’re building a recession proof business plan. Do so by focusing on customer service, providing customers with value and incentives, and ensuring loyalty. This will reduce customer churn and secure repeat business – both critical features during a downturn.
Working capital is also another essential part of your business survival. Flexible credit collection agency is there to relieve a portion of the load on your company in case things get tough.
Customer service is the number one priority.
We cannot always predict economic ups and downs, but there are still ways to increase the bottom line of your small business during a recession. Recession proofing can involve diversification, customer retention strategies, and customer service – all things that will keep your SMB through a recession with flying colors.
Customer service is a critical part of any successful business’s strategy. Customers love to trust businesses that do everything right and efficiently in answering questions; this also demonstrates that you care about your customer and what they are asking for.
Most entrepreneurs fear a recession. By recession-proofing your business, you can make your business more resilient and ensure it can survive in an era of turbulence. Get some tips on doing just that in this free webinar.