As an entrepreneur, it’s imperative that you are able to manage risks and create strategies to survive an economic downturn. In a recessive economic situation, Their is bound to be a great negative impact on businesses and numerous individuals for a considerable length of time.
Recession aren’t fun, but they don’t have to cripple your business. Smart business owners leverage recession rather than lament them.
For the individuals and businesses that were proactive, prepared, and Strategic in their thinking, recession would turn out to be best of time and to the individuals or businesses who weren’t prepared, it would be a terrible time.
The most crucial thing is to be resourceful and innovative. Business people who survive and considerably flourish during difficult times must have the capacity to look beyond the present, conquer the imperatives of traditions, see the firm from another point of view, and do business in an unexpected way.
BE A PART OF THE SOLUTION
During an Economic downturn, an entrepreneur should create a product or service that will be part of solution. In a tricky economy , it’s natural for people to want to protect the security they still have. The best strategy to know that your products or services are part of the solution is to point out the consequences that could occur if the service or product was not around. Try “‘secret shopping ” your customers and document the outcomes then secret shopping a business that doesn’t use your product or service. If there is an obvious difference, use this stories to sell your business back to your customers.
CUT INVESTMENT, FOCUS ON BUILDING
An entrepreneur should make a strategic decision in cutting some investments and focus on building business. It is advisable to strategically focus on your niche, leave all investments and focus on your business in order to be able to adjust to the financial changes that happen during the recession and for that to be accomplished; your niche should be your top priority. All other Businesses that can’t create values or yield positive results with minimum resources should be dropped. If the business remains solid through the economic meltdown, then it will become more grounded with the recuperation of the economy and you will have the capacity to purchase back more investments.
REDUCE UNNECESSARY SPENDING
Reduce or eliminate pointless cost of doing business. This is another techniques to survive economic recession as an entrepreneur. To survive recession, as an entrepreneur you should be cautious about your business expenditures. pointless expenditure such as, parties, rewards, excursions, motivating forces and some other things that have no immediate effect on your organisations development, profitability or sustainability should be eliminated or reduced to the barest minimum.
HOLD ON TO YOUR CURRENT CLIENT
Holding on to current clients is another surviving techniques for an entrepreneur during economic recession. Customers are usually referred to as the boss of the company and an organisations most prominent resource. They actually pay your salaries, bills, and are vital to the continuity of your business. Without them, your business would cease to exist.
Research done by advertising specialists has uncovered that it costs more resources, time, efforts, and assets to discover new clients than to hold existing ones. During a recession period, set up a close relationship with them and manage their complaints, issues and concerns with utmost priority. The natural urge is to hang onto every Customer, but use the spare time the recession provides to analyze your customer base and find out which ones are the most profitable and which ones are costing you more money.
SEEK OUT FOR REFERRERS
Entrepreneurs should also try seeking out for referrers. Nowadays, many businesses assume there are no sales to be made, so they stop trying and sit on the sidelines. While sales may be harder to come by, make contacts now so they will pay off later. Furthermore, if you’re pulling back on your advertising budget, referrals may be your best bet for generating customers. You should also create a program that rewards current customers for referrals
DELIVER GOOD SERVICES
Finally, Focusing on customer service delivery is another fantastic ways to survive an economic recession as an entrepreneur. Exceptional customer service delivery will ensure clients patronage and repeat purchase from you regardless of the fact that circumstances are difficult. Of all the business surviving strategies that exist; concentrating on the client service delivery is the best procedure that can promise sustainability and long haul strength for any business. If by any means you neglect your clients and fails to meet them at the purpose of their needs, then every other recession survival techniques you apply will be invalid and void.
Article By: Kenny S.