Five Tips to Recession Proof Your Business It's a scary time for businesses, large and small. And even though the country has survived tough economic times before, it's likely this may be the first major recession that you have had to weather as an entrepreneur or small business owner. But there are steps you can take to recession proof your business. Best of all, these steps are easy and cost-effective for any Web-based business to implement.
Expand your offerings. During hard times, you want to find as many ways as possible to attract customers. To do that, you need to offer as many products and services as reasonably possible. If you are in a niche market, this does not mean that you should move away from your core business focus. Rather, look within your niche to see what other related products or services you might offer. If you sell girls' party dresses online, would it be possible to expand your offering to sell accessories, shoes, tights, or even party invitations? If you sell copiers, could you branch out to also provide paper and copier supplies? Or, if you are a professional services provider, such as an accountant or lawyer, could you offer local workshops on topics of interest to people in your community? Charging a nominal fee would enable you to increase revenue, while also networking with people who could become potential clients. Take some time to think about products or services that are a natural fit for your business; then start rolling them out.
Continue to sell and market. In times of recession, most businesses understand the need to cut costs and to closely track expenses. But one area where you should not scrimp is in your marketing and sales efforts. If anything, these areas need a boost in spending! A critical factor in determining how well you survive the recession will be whether or not you are able to keep sales stable, if not strong.
So consider some of the low cost, highly effective online marketing techniques that the Web offers. For example, now is an ideal time to explore blogging, social networking sites, and search engine optimization. Creating a page on a social networking site, like Facebook, is free. It can help you to get the word out about sales, build customer relations and loyalty, as well as get feedback on customer wants and needs. You can also create a blog to help attract attention from search engine spiders; or visit other blogs, add comments on posts, and leave a signature with your Website link. Ultimately, your goals are to build a positive buzz around your business that will attract visitors and lead to sales. So keep all of your posts upbeat and relevant, finding ways to demonstrate your business' value to readers and customers.
Give great customer service. Once you have a customer, be sure to take care of them. After all, they are prime candidates for repeat business and future sales. Plus it is far more expensive to cultivate new customers than it is to build stronger, ongoing relationships with existing ones. So, while it is important to target new prospects, it is equally important to care for the customers you already have. How do you do that? Be responsive to complaints and feedback and thank them for their business. Offer them special deals and sales, and recognize how valuable they are to you by telling them they are valued. Most important, stay in tune with customer needs. Be sure you are meeting their needs. If you're not, figure out what you must do. If their needs change, then you have to assess what that means for you and your business.
Stay lean. If you haven't done so already, now is the time to pare down extra spending, find ways to control costs, and be fiscally conservative. Often, such precarious financial situations are highly stressful for business owners. So, be careful not to let your anxiety show, be it to vendors, suppliers, or employees. Instead, realize that "this too shall pass," and when it does you will be far better off if you are able to keep all of your relationships strong and in tact. After all, you'll want to celebrate with someone (maybe even everyone) once the recession finally ends!
Take advantage of your size. Small businesses, by their very nature, are more flexible, responsive, and adaptive; Web-based businesses even more so. Now more than ever, these are going to be key qualities for success. As the recession takes its toll, large companies will not be able to transform themselves or to react quick enough to capitalize on new markets, adapt to shifting consumer habits, or roll out new offerings. But you can.
From offering new products to using the Web to network with customers, there are many steps you can take to protect your business during hard times. The key is to stay focused while also trying to look ahead to new opportunities. In that way, you'll be one of the first to see light at the end of the tunnel.