The Covid-19 pandemic has taken a toll, not only on the people but also on the global economy as well. Experts believe that this level of recession was last witnessed during World War II.
Many economists say that how the country’s economy bounces back will be based on where they are at the COVID-19 infection curve. So, yes, things are tough for business owners. But that is no reason to feel discouraged. If the past has taught us anything, it’s that entrepreneurs play a vital role in helping the economy get back to normal.
How to make your business “Recession-proof”?
Below are some of the strategies to help your business survive and thrive during a recession:
Protect your cash flow:
Cash flow is the lifeforce of any business. So, when a recession hits, securing your cash flow should be your topmost priority. Keep the cash flowing and cut out unnecessary expenses.
Work with your existing customers:
Maintaining a good relationship with your existing customer is important during a recession than at any other time. It is 5-25 times less expensive to maintain relationships with existing customers rather than acquiring new ones. And with existing customers, you can be sure the purchase is guaranteed. So, send out newsletters, build a campaign, or give them special offers.
Marketing is crucial:
Recession affects all of us. People will be restless during this time and will be looking out to make changes in their buying decision. And marketing is the best way to get people’s attention. Do not cut out on marketing if you don’t want people to forget your business.
Focus on core competencies:
Recession isn’t the time to experiment with offering new products or services. Focus on the products and services that you know will perform the best and promote them.
A recession can be a scary time for business owners. But remember, “Happiness can be found, even in the darkest of times, if one only remembers to turn on the light.” (Yes, that was a Harry Potter reference) We can always turn things around and succeed. Start by analyzing how your business is doing now and look for ways to improve it.