While the government does its best to cushion the people during tough economic times, the effect is often detrimental. Businesses are among the worst hit during these tumultuous periods and, as such, demand the most support.
Although heavy, these moments come with a host of lessons that both small and large enterprises can use to restructure and grow. Take your business to the next level by incorporating these critical takeaways during tough times.
Customer Relationship Matters
When there's an economic downturn, most people bootstrap to survive. During this time, businesses often look to their most loyal customers for support to meet the basic demands of production and worker salary.
Without a solid consumer base, it is easy to lose market influence during tough times.
Keep your loyal customers happy and satisfied by making them feel appreciated, and they, in turn, feel inclined to refer you to other clients.
Maintain a robust online presence to boost your business market confidence as more people interact on different avenues.
Improve your business-customer relationship by:
Encouraging Collaboration
Hold workshops, training, meetings with your core customers to strengthen the level of engagement, understand their needs better, and build rapport.
Automate Functions
Make your consumers feel less burden by automating the order and delivery process of products and services. The easier it is to access your company services, the happier they'll be to order more.
Solve disputes amicably
Admit and own mistakes you make in service operations. If a product happens to be faulty or has an error, it is better to find common ground for replacement or refund when the mistake is on your end.
Marketing Never Ends
Although individual consumer spending radically reduces during tough times, you can supplement this shortage by improving marketing outreach.
You can effectively promote your products or services via:
Social media
Blogs
Paid Ads
Affiliate links
Video
Incorporating some of the new ideas will require restructuring your business plan template to accommodate the adjustments. Cost-effective marketing strategies include:
SEO Optimization
If you already have a website, optimizing key aspects such as the content will position your business better on the search engines, and as a result, there's more interaction. Optimize your social media pages as well for more targeted traffic.
Email Marketing
Build a list of email subscribers and use it to market your company. You must, however, avoid being too aggressive with your marketing efforts and instead focus on providing useful and reliable information about the products or services.
Leveraging Influencers
Find a suitable influencer in your niche and request them to get your products or services In front of their vast online followers. While you may have to negotiate a fee, it often guarantees faster results.
Protect the Cash flow
With tough times calling for better management of resources, you must protect the money flowing into the company. Cash flowing into the business helps in running daily operations, repaying debt, and remuneration of workers.
Successfully manage your cash flow by:
Frequent Monitoring
Through various accounting software online such as QuickBooks, you can keep track of your business's money flow remotely.
Cash in Assets
When in a financial crisis, you need every coin you can get, and as such, cashing in on obsolete assets makes sense and increases the cash coming into the business. Utilize property that you don't intend to sell by leasing them out for some duration.
Speed up Payments
Boost the speed of money flow by offering cashless payment options using mobile applications or related software. Motivate on the spot payments by including incentives in the overall purchase as well.
For example, you may give a 5% discount for goods bought at your store with cash at hand.
Schedule Invoices
Request payment for services offered or products delivered promptly to avoid any delays. Come up with invoice designs that are easy to read and interpret for faster transactions.
Automating is a Priority
To cut operations costs and still maintain quality services is a challenge businesses face. However, the introduction of technology has made it easier to offer quality without having to spend much.
By automating essential functions you:
Increase Productivity
Technological input reduces the time taken to complete tasks like manually delivering products. By automating services, workers are often left with little to do and have more time to focus on other important functions.
Streamline Communications
With modern equipment, the transition of information is faster and smoother. In fact, with a single press of a button, employees can receive specific instructions and details about a particular project.
Boost Customer Satisfaction
Through the help of technology, there is less room for error in the process of service delivery. Customers who order and receive their goods or services in time are often left satisfied and are likely to come back.
Keep an Eye for the Competition
While an economic downturn takes a lot of business down, it also presents other companies with opportunities to rise. Keep a close eye on your nearest rivals and track their progress.
Maintaining a clear view of your competitor helps to:
Choose the Appropriate Strategy
Getting inspiration and ideas from close competitors helps you develop counteractive measures by including some of their best in your strategy.
Respond Better to Changes
Once you have an idea of the competitor strategies like attracting new clients, better service delivery methods, or price changes, you can adjust and come up with a better counter-strategy.
Get a Marketing Advantage
After doing a complete competitor analysis, you derive valuable information about the kind of markets your competitor is targeting and the plan of execution. These details help you to take a step further and come up with better tactics.
Not to Shy Away from Diversification
While a business must always focus its core services, tough economic times may force a re-think. Relying on a sole stream for income can often prove detrimental during hard times.
Diversifying your revenue streams boost cash flow, promote wider audience reach, and guarantees you a safe landing when things get worse.
If, for example, you have a chicken selling business, consider selling eggs and or chicken manure as supplements.
Other benefits of diversification include:
Economic Buffer
A change in economic fortune always brings a shift in consumer preferences. Through diversifying, you can accommodate the changes in spending by offering other useful alternative products.
Prevents Shock
Your business may thrive until misfortune strikes. Stay on top of any situation by diversifying from one to several income streams.
Networking is a Skill
Accessing help, advice, or key industry information requires a web of connections in business. With the right networks, your business can thrive in any economic meltdown.
Use these tips to establish the right support systems during tough times.
Find Suitable Venues
Choose events with groups of people with whom you have vested interest. Work your way through this group and connect with high-value clients and investors as well.
Search for Common Ground
While networking, focus on forming bonds and relationships that last a lifetime. Look for interesting topics that the target person may be interested to hear and use this as a base to establish a conversation.
Dress Neatly
No one will want to network with someone who looks rugged and shaggy. Instead, dress decently and avoid having too much extra's on.
Conclusion
While economic turmoil is bound to happen every so often, businesses can use the experience as lessons for better future decisions that help thrive during challenging times.
Incorporate key lessons like customer relationships, marketing, automating, diversifying, networking, and protecting your cash flow for a smoother transition.