Economic recession and reduced customer confidence can affect businesses’ sales revenues, particularly those of small businesses because of small cash reserves. Weathering your business against the recession is important for survival. Here are some best practices
- Understand your unavoidable cash outflows and project the required inflows over the medium-run. Keeping abreast of changing economic conditions can help in figuring out how to maximize cashflows
- Spend enough to retain your customers. In times of crisis, having customers is important to ride the bad period over. Reach out to your biggest accounts and your most loyal customers and implement your business vision. Due to reduced spending and costs, you can enter into long-term contracts with them.
- Check your current inventory and revisit the amount you’re ordering and the suppliers you’re ordering from. See how you can lower your inventory costs to reduced blocked cashflow
- Don’t cut back on marketing campaigns. Revamp your strategies and expand your reach to include your competitor’s customers also. Position yourself as a great value provider. Rethink your USP and research your competition. You could also consult a strategy expert.
- During a recession, customers want to change their spending decisions. Your strategy could influence them. Offer exceptional customer service and be available to them to trump your competition. Reaching out to them before they reach out to you shows sensitivity
Ourbusinessladder specializes in market research and business advisory, based out of India. Our 360-degree approach helps businesses improve their strategy through market research, branding and gamification strategies, and business advisory consulting.