1. Keep Hopeful – life is full of seasons and economic recession is one of them. So keep hopeful that the trend will turn around. For instance, if your business depends a lot on oil prices which is currently low, it will rise again. See below table of oil prices for the last 50 years, you will observes that prices meander . So remember life is in seasons “As long as the earth endures, seedtime and harvest, cold and heat, summer and winter, day and night will never cease“.
2. Diversify – when one door closes another could be open, look at alternative products or services your can offer. It could be related to what you are currently doing or totally something different. Change is the only constant thing, so you need to be flexible and open minded to try other opportunities.
3. Invest more – yes that is right, if you want to invest then this is the time, some businesses will be up for sale and will be cheaper than their actual value due to economic recession. When the economy bounces back you will be making capital gain and profits.
4. Take advantage of legislation – during economic difficulties governments change laws to boost the economy, they also put incentives in places, so talk with a professional and try to see what incentives are out there for you such as grants, fee waivers and so on. There is a possibility that taxes may increase to help government revenue but there always ways to avoid (not invade) them .
5. Cut cost – you need to avoid all unnecessarily expenses and “nice to have expenses”. Keep only essential business expenses. Also review your current vendors and check if you can get better value or better prices.
6. Strategic Advertising – one may argue that advertising increases expenses, but this is a necessary expense, you may have a good product or services but you need to get it out so people will be aware. At the start you may need to try several advertising options (Online, Print, Electronic, Social media, Referrals etc) with time you will learn which is most effective and be able to create a niche there. Note not all advertising is effective and lead to business patronage. Precise Web Marketing will be glad to help you.
7. Promotions and Incentives – you may consider price reduction and discounts to boost sales. Also it is a good time to rewards and appreciate loyal customers who have stayed with you over the years by giving them discounts. You will not want to lose them.
Business Tips in a Declining Economy