Economic recession doesn't come with prior notice. No one knew at the start of 2020, just how deadly the COVID-19 pandemic would be on the economy. This has resulted in minimized sales as well as reduced customer confidence, which has already been threatening many businesses. Small business firms have also been left slightly more vulnerable because most small business firms don’t have adequate savings to fund themselves during a recession.
Michael Giannulis shares crucial business tips
Small business firms should follow a set of recession-proof strategies to help carry out business during this slow economic phase. Below, Michael Giannulis shares some of the best business survival strategies.
- Assess inventory management
Can you bring down the inventory expenses without making any cuts on the essential good? While considering this, you should also ensure that this won’t compromise any customer expectations. You need to check if you are ordering excess amounts of anything or if you can buy some inventory at a lesser price somewhere else. Check if you have a drop-shipping option which will help to reduce warehousing and shipping expenses. You should look into all of these aspects and then make some informed decisions.
- Secure the cash flow
Cashflow is the life-force of any business. You need to maintain proper cash flow management for all situations or else you won't be able to carry on with daily business functions. As long as the business exists, there will always be expenses.
- Concentrate on core competencies
Small business entrepreneurs simplify the business diversification process and let it be known that their different. A business can’t diversify by simply adding other services and products. By doing this, you could waste ample money that need to save, keeping in mind any future crisis. Hence, it is necessary to focus on your core competency so your brand’s reputation doesn't get damaged.
- Win competition’s consumers
Businesses need to keep growing their client and customer base so that their small business stays afloat during tough times. This means you have to draw in customers directly from the competition. For this, you should show something different or provide more of something that competitors aren’t supplying. How should you go about this, you may ask? You will need to research your competition and entice customers from opposing organizations to instead buy from your brand. Take a close look at the way your competitors are advertising their products. You can draw ample information and ideas to apply to your marketing strategy. Also, asking the customers about the things they like and don’t like about your business can do much to help you improve. By following these tips, you can get more customers during a crisis.
- Don't stop marketing altogether
Several small business owners put a complete halt on their marketing activities which is not a smart thing to do. Customers will still have demands, which you should continue to cater to. So, it would be best to continue to market your products to reach the correct audience groups.
No one knows exactly how a crisis strikes the market and economy. However, if you equipt with the tips mentioned above, you can continue to sustain during most economic crises.
