An economic crisis is an unexpected event that throws some businesses off balance and sometimes makes them crash completely. As we prepare for the new year, there are certain things which can be done to ensure that your small business will not be affected by the economic crisis and will stand the test of time.
Ensure that there is cash flow, no matter how little.
Cash flow is the core ingredient for business survival. There has to be a continuous flow of money in and out of your business for the business to be at its best. Your income has to be more than your expenses. It is difficult to maintain the inflow of cash, but this can be done by implementing strategies to ensure that it happens and that your expenses do not exceed the business income.
Focus on the areas of your business strength.
An economic crisis is not the time for a business to produce new products, all in the name of creating variety. Adding other products can waste time and resources, and it can take your attention away from doing what you know how to do best. This can damage your business reputation. You should drop all side distractions and put more efforts into improving on your best products and services that are most profitable.
Do all you can to retain your current customers
As the adage goes, “A bird in the hand is worth two in the bush.” This applies to businesses. As an SME owner, your “bird in the hand” is your current customers. Keep them coming back to patronize you, especially the loyal ones that buy more products and patronize your services more. They are the pillars of your business survival through an economic crisis so you have must retain them and you can do that with excellent customer service. Ensure that your clients love what you do and sell. Note their needs and satisfy them.
Increase your marketing activities
A lot of small businesses make the mistake of reducing marketing activities and plans during a crisis. They may even go as far as expunging marketing from their business plans. Ironically, it is during times of economic crisis that small businesses need to level up on marketing. As a business, you need to help consumers to find, identity, and choose your products and services amid several available in the market. Rather than quitting marketing, step up your game and put more effort into it.
SMEs need to do everything possible and positive to keep their businesses functional and productive during an economic crisis if they want that business to grow and remain relevant in the future. Contact me if you need help to level up your business in the coming years.
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