Economic downturn, recession, industry shakeout, and dishonest partnership are all situations that can test the longevity of your business. Surviving in tough situations require unwavering determination and the attitude of never giving up. But, in the merciless and rapidly changing marketplace of today, you need much more than self-belief. What are the things you can do to save your business in times of crisis?
Six strategies to fight back in hard times:
Here are some effective strategies for small businesses to apply in hard times:
- Cost cutting
Yes cost-cutting is mandatory, but you need to do it with precision. Most corporations have a typical approach to cost-cutting in difficult times and that is a massive cost reduction plan. If you do excessive cost-cutting, your business will suffer immensely and perhaps never recover. If you do minimum cost-cutting there’ll be cash flow troubles. So, exercise judgment and care in determining where and how to cut.
- Low-budget marketing
When the recession hits, the business’s marketing function is the first one to suffer. With less marketing and advertising, the number of incoming prospects will reduce. This will result in more decrease of revenue.
So, the key to survival is to lessen the marketing activities as well as coming up with low-budget tricks. For instance, marketing on social networking sites is free of cost. Low budget advertisement also includes networking, PR and public speaking.
- Look outside
It is a common characteristic of most small businesses to be localized, not only in terms of location but also in matters of marketing focus. In critical times, you have to look beyond the usual boundaries of the business of yours. One such amazing opportunity is global trade.
- Fundamental focus
In ideal situations, business comes easy. So, in bad times, you need to stick to the fundamental principles of your business. Providing training to sales team, doing daily financial checks, and managing relationships with regular customers are among the fundamentals that are worth re-learning and re-visiting.
- Stay close to peers
Events such as industry shakeouts and recession affect more than just businesses. Complete sectors of the marketplace are bound to face the impacts. So, one useful approach is to gather wisdom from the ones in similar situations. The wisdom of a group is always greater than that of an individual.
So, be a part of official peer groups or trade groups for extracting the knowledge and learning about the best practices.
- Don’t replay, just process
It is a waste of time and energy to keep replaying the unfortunate situation or wrong decision that put you in this state. What is done is done and it is pointless to mourn about it. Be it a failed partnership or a recession, do not over-think. Instead of brooding over your misfortunes device a plan to fight back.
Surviving a crisis of personal or professional nature demands a healthy outlook along with a kickass strategy. So, cheer yourself up and keep working towards your goal. Always remember that bad times will not last forever.