It is only 2 months before 2022 marks the end of its year. It is almost 3 years that we have been slowly and gradually adapting to the COVID-19 phase of endemic. It is also the transitioning period from the dark pitch age to the current time, where we have been growing stronger and determined to start our life again. There is a bright hope that opens the hundreds of opportunities to begin our career again after had been fired by employers due to the lay-off, in which COVID-19 had become the major factor. The regional economical and commercial activities have been freshened up after a long stagnant time where finally COVID-19 has slowly loosened its tight grip. This is finally a hopeful time where every walk of life can pause and take a breath. However, in 2022, the whole nation has been shocked with the most terrifying news, which is the prognosis about the global recession in 2023. The global recession may be the worst recession in human history. We know that this prognosis is truly heart-wrenching news for all of us. In this article, we will focus first on the small businesses and help you as the small business owner to be more strategic in order to survive from recession.
Strategies For Small Businesses To Survive From Recession (H2)
We are all aware that small businesses may not have the most effective and the most comfortable financial cushioning in comparison to the giant and monopoly companies. Therefore it is vital for you to plan a strategic plan to protect your business from the unbearable loss due to the upcoming recession. Here are some suggested strategic strategies for you to survive from recession:
I. Pay Attention To The Core Competencies
Focus your energy, strategy, time and budget on the products or services that your business is really best at. How do you clearly define that your certain products or services are actually the core competencies of your business? One of ways that you can do to know it by performing an analysis or looking through your business record book. You can look at what are the products or services that are fast-selling and always in demand. Another way to know your business core competencies is remembering back the enquiries from your customers. Try to recall the existing products and services that are often enquired by your regular customers. After knowing exactly the STAR products or services that your customers like to purchase in your shop, then it is the best to spend your budget and create multiple streams of revenue to promote your STAR! Few ideas to create multiple streams of revenue are by introducing again your STAR products or services by offering VIP packages or subscriptions at an economic and affordable price for your customers.
Remember that core competencies of your business is such a STAR and STAR is also another term of best-selling products or services in marketing.
II. Never Give Up On Marketing
If marketing was a cloth, it would be the cloth that was never worn out for many generations! You cannot refute the power of marketing and should not give up on applying strategic marketing to your business. We understand that some marketing strategies require a big cost in order to promote your business and brand among your existing customers and potential customers that are outside of geographical borders. However, there are also affordable yet still effective to market your business and brand to the people out there. Here are marketing strategies that are not only effective to win your existing customers and to gain more customers but also incredibly cost-efficient!
- Email Marketing
Remember to utilize your business email to do email marketing by sending content-rich emails regularly to the current customers on your email list. To do email marketing, you are required to have a consent to get customer data for marketing purposes. Bonus point about email marketing is it is really low-cost strategic marketing! It is important to not hard sell and please be more sensitive to the times.
- Social Media Marketing
It is a digital era where the small businesses should own social media for the products and services too. More potential customers are scrolling up and down their social media pages to read the updates, and even to window shopping through social media of businesses! Yes, this is a power of combination between social media and marketing and that’s why you should ensure your business still gains revenue although in recession. At the same time, you need to be more diligent to update, curate and create posts regularly that are related to your business.
Apart from that, social media marketing can strengthen your business sales. It will attract potential customers, build trust to choose your products or services, and influence buying decisions among customers.
III. Protect Your Cash Flow
Katie Lundin, a Marketing and Branding Specialist at Crowdspring, said in her blog that ‘’ recession leads to slimmer profit margins, which can make maintaining a healthy cash flow more trickier’’. Therefore, she has a list of suggested options to protect small businesses’ cash flow. Let’s look at it together.
- Cut back on any non-essential spending
As a business owner, especially the small business owner, you need to be more careful on your money flow. You are suggested to audit your current spending and terminate any services, memberships or resources that your business can function without.
- Renegotiate vendor agreements with more favourable terms if possible
Katie Lundin said that vendors would be happy and open to be asked for the negotiation of the terms of your business contract with them again. See if they are willing to offer you a more competitive price or more flexible payment terms while the economy is challenged.
- Arrange for financial assistance
It is recommended to look for and apply for small business grants and small business loans to help keep your business strong and afloat in recession. At the same time, it is important for you to build credit for your small business by creating a first NET30 account .
Katie Lundin reminded us that it is a must to understand the cash flow situation and have a solid grasp on the numbers, thus you will know the best ways to protect your small business and even yourself.
IV. Investing In The Existing Customers
You need to spend more capital to attract and gain more new customers to purchase your products or services. Therefore, it is strongly suggested for you to invest in your existing customers rather than spending too much on other things. How can you actually ‘’invest’’ in existing customers, which are the people? As a small business owner, you can invest in your existing customers by forming real relationships with your customers and show them that you have their back if they need any help or a considerable discount. Last but not least, every human and living thing deserves respect and so are the customers. Treat them with respect and appreciate their patronage through your actions! Cheers!
Yes, we do focus on the smallest and basic strategies. We really hope that everyone can be prepared to face the global recession. We are in this together, never lose hope. Never ever lose hope!