April 6, 2020 Last updated April 16th, 2020 710 Reads share

5 Things Entrepreneurs Can Do To Recession-Proof Their Business

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Since the world is dealing with a severe pandemic, there is an apparent decline in customer trust, which is a considerable hazard for businesses around that world. However, small businesses tend to suffer the most and are at higher risk. They are the most vulnerable because they do not have vast reserves to deal with this pandemic.

However, business owners need to protect their businesses. Many businesses are taking measures to protect their businesses. Retailers, for example, such as The Mobile Experts, a large phone repair chain in Australia, with 36 stores, have introduced new services such as in-home phone repairs to cater to those who can’t visit their physical stores.

Many retailers are putting up sales in their stores, and they are offering exciting bundle offers that are beneficial for customers and retailers. At this point in time, people are more vulnerable to buying more. Many businesses are also putting up taglines like “shop at home” to encourage online retailing.

As a business person, you need to remember that no matter how tough times get, you need to keep the cash flowing and come up with new ideas.

Protect Cash Flow

The COVID-19 pandemic is a huge problem right now. But as a small business, you need to stay healthy and try to combat the issue effectively. As a small business owner, you need to keep the cash flowing no matter how hard the times get.

You need to keep your cash outflow strong and active no matter what. You still have a business, and businesses have a lot of small expenses. You need to implement recession-proof strategies.

Develop and Implement Strategies to Win the Competitor’s Customers

The world is going through the toughest times right now, and everybody is well aware of it. As a small business, you might experience it the most. However, in these tough times, it is important for you to still keep on working to increase your customer base and find opportunities in difficult times.

The best way to get more customers is by providing your customers with something different in terms of value that other businesses are not offering right now. Study your competition and come up with new ideas and techniques that could give you an edge.

Jewellers such as Moi Moi Fine Jewellery are known for offering a boutique service to their customers. The face to face tradition is an essential part of a satisfactory sales experience, but due to the COVID-19 situation, they’ve had to change their consultation services online through video chat and offering ‘try then buy’ services to customers can try the ring on at home before they make the purchase.

Focus on Core Competencies

Many businesses fail to understand the term ‘core competency.’ They think that doing something different compared to the rest of the entire industry is a core competency. In simple words, it is a skill that your business excels in, and competitors have a tough time matching your skill.

So, in these difficult times, try to find your core competency. Find that skill and invest your energy in that service rather than wasting it on something that is not your best quality. Wasting your energy on irrelevant things will be dangerous for you in the current situation of the world.

Make the Most of Current Customers and Clients

Since times are super tough, you need to make most of your current customers. In these challenging times, finding new customers will be a significant struggle, and incurring costs on a prospect is not really
worth it.

As a small business, your current customers are your asset, and you need to keep them at any cost. There is a very old saying that goes like, “a bird in the hand is worth two in the bush.” This means if you concentrate on the prospect, you might lose your current customer as well.

That means you can try to use your existing emailing list of past customers and see what you can sell them. Implement a sequence of emails to upsell them similar products. For example, if you’re selling exercise equipment, you have a plethora of items you can offer your customer. From clothing or recovery goods, all you need to do is to put an email together.

Don’t Cut Back on Marketing

These times seem harsh, but it does not mean you cut down on marketing in any way. Most small businesses make the mistake of cutting back on marketing in these tough times. You might not know this, but in this challenging period, marketing is the only thing that will get you out of trouble and keep your business healthy.

In such times, customers are desperately looking for products, and they will buy anything that they see. So it is your job to help them find your products rather than letting them find other products.

recession road sign -DepositPhotos

Felix Yim

Felix Yim

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