When looking to help a business survive and economic recession you must know that this is among one of the most challenging things that you can do. Weathering the storms of financial instability is something that can potentially sink a business. While it’s a fact that even small businesses are vital for a strong economy, it remains that in times of economic downturn it’s often the smaller businesses that will collapse while the larger ones remain – just. If you are looking to prepare yourself for a potential economic recession we can help. We have compiled a list of some of the top strategies that you can incorporate to your business plan so that the next time things are looking grim you will be able to weather the storm.
Cut costs down
When things are looking rough on the horizon, you need to tighten the purse strings like you’ve never tightened them before. One thing a company can do is to look at the biggest costs (like staff and rent) and make changes where they can. Often, if you’re running a pretty tight ship, staff costs aren’t going to be something you can cut. So – think about the office. Perhaps you’d be better off in Serviced Offices by Servcorp Thailand than you would in your current corporate lease? While a serviced office might put you off because of the initial cost, the truth is that in many cases a serviced office works out to be a lot cheaper for your business as you’re not responsible for all of the bills, internet, cleaning and insurance for the building. You just have to go in and set up!
Look at your marketing
One of the biggest expenses for your business is your marketing. And while it’s imprudent to cut marketing altogether during times of recession you need to make sure that you’re spending your money on the right things. A good marketing analysis and efficient tracking of return on investment is a great way to ensure that your finger isn’t ever off the pulse.
Look after your customers
When you are doing it tough or potentially facing a tough time, you need to make sure that the people who put you where you are today aren’t forgotten. Customer service is a huge part of business – if not one of the most important things, and you have to do your utmost to ensure that your customers are feeling the love. If your customers are feeling appreciated they will continue to want to shop with you and will bolster your sales when things are tough. If you’re a B2B business then you need to be working double time to ensure that the businesses you trade with are looked after well enough to maintain their contracts with you.
Respect your processes
A key part of your success during a recession is going to be you managing your team well and working to your processes. Your processes – if refined well and managed appropriately are going to be the single biggest contributor to you staying on target. You just need to refine things to the point where you don’t miss a single dollar; where you don’t waste a single piece of paper on anything; and your money will continue to come in.
Surviving a recession is nothing short of amazing, especially when you are a small business. If you follow the tips above and take the time to make savings where you can you’ll find that you are thriving on the other side of a tough time. While it won’t be easy getting through it, know that you can if you just work hard enough.