How To Run Your Business During Economic Downturns

For those who are looking for ways to endure the current recession, it can be tough to get the kind of information that will help your business stay afloat. Doing business during recession takes a unique toolkit of skills and knowledge. It also helps to have some common sense too – a quality often in short supply amidst a crisis. Keep reading so I can give you some solid steps to smart business in the recession.

Caution And Marketing

As the economic recession commenced the first casualty was the consumer. Even before the economists in Washington were willing to admit a problem, factors like rises in food and energy prices without a change in pay rates are obvious indicators. If you add actual joblessness then you have a recipe for disaster. As it stands, household financial stability has been shaken if not broken entirely all across the country. Therefore, the business owner probably understands that their customers have far less to spend. This means that marketing must be transformed to take these changes into account.

For Better Business Practice

1. Comparison shopping for vendors – To get that lower price, you need to look at the vendors if you get products from them. In this way, you can start comparing current benefits with other options that might be available. Like your business, vendors are trying to retain business during recession. This leads them to focus more on competitive pricing. What this comes down to is “encouraging” vendors to reduce their prices in order to keep you as a customer.

2. Scale back outsourcing – If you’ve taken advantage of outsourcing work in the past, you should consider scaling back and start doing tasks yourself. This may be a great way to save money. Now this step may be harder for those who outsource even essential services since they lack the requisite skills. What about writing, maybe you should set aside more time to write articles yourself rather than hiring a freelancer. Consider other, less expensive options.

3. Use web tools for better pricing – Use the internet and search engines to find better prices and other resources. You can take advantage of thousands of online sites in order to find better prices on inventory items, DIY help site, and even discount dealers.

Capitalize On Strengths

Recognize your own unique business strengths in the current economic climate. Stay on top of things so you can develop the business during recession. You want to survive – and thrive – during the downturn. Determine which products or services perform the best, and promote them heavily in your advertising and marketing strategies.

How To Fool Proof Your Business During Downturns

The cash register receipts are low and the customers are slow in coming. What do you do? Increasing revenue and protecting your cash flow will take some creativity, time and quick action in order to not get left behind by your competitors. During dry spells and downturns you need to evaluate where you are at, how you are doing and what more can be done. Asking and answering the right questions will help you keep your business afloat and growing. Here are some ideas for making what seems to be a dreaded time into a learning opportunity.

Seven Tips For Staying In Business During Dry Spells

1. Make the most of present customers, get repeat purchases through incentives, discounts for referrals – they say 80% of your business will come from 20% of your customers.

2. When trying to penetrate the marketplace with little money go places where your competitors will not go, i.e. try smaller venues. For example if you want to get your sauce on the supermarket shelves, begin with local corner stores, trade shows, fairs and festivals. Consider partnering with chefs and placing it one the menus or tables of restaurants.

3. Examine your process, prices, and look, then ask how can I make this better? What is one thing you could add that would really impress your customers?

4. Re focus- often times entrepreneurs will go from one product to 50 products to make the sales, the problem with this is nothing stands out, it requires more time, money and energy to market so many products and none is given proper attention. Trying focusing on the highest sellers and cutting back on the amount of service offerings or product lines.

5. Look at your current expenses and see where there are leaks in spending, can you cut back on some items, call your vendors and ask about suggestions on cutting expenses. They want to keep your business and will help you to continue to pay your bills and maintain a good relationship.

6. Do not throw away the idea of strategic planning it’s not only for the big businesses. Get together mentors, people who have a variety of skills and different opinions and ask questions, get ideas, make it easy for them to participate by keeping the questions brief and making the time flexible. As part of this strategic planning, survey your customers ask them what improvements they want to see; what they like most and do not be afraid that you will not be able to meet the request. This exercise may give you a whole new product line or additional services for your customers thus increasing your bottom line.

7. Go on a vacation – when you are in the midst of the busyness of work, selling, planning and moving forward, it is easy to forget the principle of rest.