One thing that the Coronavirus pandemic has taught small business owners is that unexpected circumstances make being adaptable and future-proofing your business more important than ever. The crisis has not only changed the way we do business, moving operations online and causing storefront closures in most states, but has also deeply affected the country’s financial health. With the global economy in a steep downturn due to shuttered economies, many say that a recession is in progress or is on the horizon.
For small business owners, this is a scary possibility. Without the large financial cushion that many big businesses enjoy, a recession has the potential to break a mom-and-pop company. Instead of leaning into the anxiety of potentially having to shutter your business’s doors, use these tips to protect yourself and your livelihood’s long-term financial health.
Focus on What Your Company Does Best
While there is a time and a place to experiment with all of the new business ventures you’ve been dreaming about pursuing within your company, focusing on your core products and services in the face of a recession is a good way to streamline your business’s operations and protect your revenue. Don’t pour funds into new product development or supporting fledgling ideas that haven’t yet begun to garner a regular profit. Rather, assess your current offerings. What are you really good at? What do you clients come back to you for again and again? You can likely find stability in pushing these items and diversifying your income streams for your most popular products, such as adding a subscription service or creating new item bundles.
Keep on Top of Your Marketing Efforts
Just because the economy may be receding doesn’t mean that your advertising efforts should take a back seat. In fact, you may want to up your marketing plan to push your core products and services even harder, as people with less disposable income may be paring down on their expenses and need to be convinces that your offerings are the best use of their time and funds.
COVID-19 has shown us the importance of having a strong online presence. If you haven’t done so already, focus on your website, email list, retargeting ad management, and social media marketing so that your business is accessible to your clients from the comfort of their homes.
Save Money on Overhead
In order to protect your business’s cash flow, you will want to save as much money as you can on overhead costs. As we detailed in our article on this topic, outsourcing your accounting, consolidating costs and expenses, purchasing in bulk, maximizing your staff’s value, and going paperless are great ways to accomplish this task. If you still feel that your cash flow may not be enough to protect you in the event of a recession, according to CPA Practice Advisor, you may want to look into the financial assistance options available to you ahead of time.
Focus on Building Your Relationships with Current Clients
Building strong relationships with your current clients is a great way to foster customer loyalty and keep your existing accounts. If you need some ideas on how to foster connection with those you serve, click here.
As the leader of your company, you are in the best position to protect your business and staff against the possible challenges of an economic downturn. By focusing on actionable steps you can take to safeguard yourself rather than panicking, you are setting your company up for success in the face of a difficult situation and giving yourself the best chance to survive and thrive no matter what comes your way.