It's never too late to begin recession-proofing your small business. It adds an extra layer of security and a contingency plan for when the economy begins to decline. But what does it mean to recession-proof your house? We have a couple of recommendations to help any business get started on the right plan.
From protecting your cash flow to building your customer base, implementing a few practices in advance can help recession-proof your business so it survives and even thrives during economic downturns.
Win The Competitions Customers
You must continue to expand your customer/client base if your small business is going to prosper in tough times. This means drawing customers from your competition. This can be approached in different ways:
Showcase your product on social media and target your competitor's audience
Create Brand Loyalty through giveaways and items with company logos
Stand Out with your value proposition - Always put your differences on display
Use SpyFu to understands your competitors' most profitable keywords in ads and google search
During a recession, many of your competitors will begin to roll back excess spending. Most businesses will make the mistake to cut back on their marketing, meaning the landscape for their audience's attention.
If you aren't familiar with other companies in your industry, it's time to do some research. Watch their ads, sign up for their email lists, visit their brick-and-mortar stores, and visit their social media pages to keep tabs on everything they do. Watch for qualities that separate your business from theirs, and do your best to offer something unique that nobody else can match.
Make The Most of Current Customers
It's significantly cheaper to market to people who are already familiar with your company and the products or services you offer. We've all heard the old adage that a bird in the hand is worth two in the bush. The bird in the hand is your customer or client, and they're an opportunity to make more sales without the increased costs of finding new customers.
Even better, they might be loyal customers giving you many more sales opportunities. You can't afford to ignore the potential profits of shifting your sales focus to include established customers if you want to recession-proof your business.
The key here is excellent customer service. Ensure that your customers or clients love what you do or sell, and keep them happy. Identify their needs, then meet them. This is more important during a recession than at any other time.