It seems that small businesses are always hit first and hardest during tough economic times. With rising prices, interest rates, and increasing supply chain shortages, it can be hard to stay confident in how we run our businesses. So, as an increase in inflation puts pressure on demand for our products and services, how can we stay positive and protect our businesses?
Tips for how to Recession Proof Your Business
Revisit your goals.
When business is good, you may go on “auto-pilot” and start to stray away from your main goals. As times start to change, like now, it’s time to see if you are still aligned with your original objectives and action plans. Clarifying your marketing strategy to make sure that you’re reaching the right customers is key. Every dollar spent should help you reach your ideal customers.
Get creative.
When was the last time you took a look at your day to day operations? You may be surprised to find other ways to monetize your business or ways to lean out processes. Maybe there are other services you could add, or structure your fees in a different way that creates recurring revenue instead of a one time sale. You may also consider creating content that customers would pay for, instead of offering for free. Now is the time to get creative and stay flexible.
Focus on your clients.
Investing in your current customers and relationships instead of constantly chasing new ones is a strategy that will keep you successful in the long run. Instead of creating experiences for your current customers that are solely transactional, try to build a relationship so customers keep you top of mind. Starting a newsletter to keep in touch, or even just reaching out as you have new information to offer, lets your clients know you care and keeps them coming back. This not only keeps your customers coming back, but also encourages your customers to tell others about your business. Your customers would become happy advocates for your business. The word of mouth advertising would help you get more clients at a lower cost than a traditional or cold advertising and most likely within your ideal client demographics.
Hard times don’t last forever. You may need to think outside the box to recession proof your business. Positioning your business for success now keeps you from scrambling if things get worse and helps you to make sure that your business will strive once the economy improves.
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Disclaimer: This article is intended to serve as a general summary of the issues outlined therein. While this article may include general guidance, it is not intended as, nor is a substitute for, qualified legal advice. Your review or receipt of this article by Lexern Law Offices, Ltd. (the “LLG”) or any of its attorneys does not create an attorney-client relationship between you and the LLG. The opinions expressed in this article are those of the authors of the article and does not reflect the opinion of the LLG.