Small Business Survival: Strategies During Economic Recession.
With all that said, it’s wise to assume that no business is safe when it comes to a recession. So here are some strategies for business survival during a recession you can employ to give your business the best chance.
Cut or reduce unnecessary costs
This is an obvious one but it’s by no means a silver bullet solution, nor is it sustainable. However, when times turn tough you might want to consider the following:
1.Negotiating down your monthly rent and any other supplier costs
2. Find cheaper vendors for utilities and cut any non-essential technology costs
3. Delay payables and collect receivables sooner
4. Consider whether poorly performing employees are worth retaining
5. Look at flexible staffing options
Nurture your existing customer base
Reach out to your existing clients or customers and ask them what they want or need from you. Listen to them and then deliver outstanding customer service. If your existing customer base is nurtured throughout a difficult time, they are more likely to be loyal and recommend you to their networks. You might even consider cutting the bottom 20% of your worst-performing customer base to ensure you’re devoting precious resources to those that are worth it.
Support the employees you’re retaining
A recession naturally provokes anxiety and fear, especially if costs are being cut and employees are being furloughed or even laid off. Letting your poorest-performing employees go may be a step you need to take. If so, build morale and motivation in the employees you’re retaining by clearly communicating with your staff what is happening within the business. Try to involve them in the decision-making process, so they can feel included and part of the solution. Motivate them to work hard because you’re all in it together.
Build relationships
Always keep the lines of communication open. Get out there, network and build relationships. Keep your ears open, your eyes peeled and your thinking outside the box because you’re going to need your wits about you to spot those much-needed opportunities.