Right now, times are tough for small business owners across the world. Unlike larger companies and corporations, smaller businesses don’t always have the resources needed to weather a severe economic downturn. That doesn’t mean all hope is lost, though.
From finding creative ways to cut costs, to winning over your competition’s customers, here's how to help your business stay afloat.
As your business grows, analyzing the company’s cash flow becomes more and more complicated. Sales, loans, expenses, investments and more all contribute to your overall cash flow.
To survive a recession, you need a deep understanding of how cash flows in and out of your small business. When this information is readily available, it’s easier to respond to market forces that are outside of your direct control. For example, if the amount of cash flowing in has reduced dramatically, you can still cut expenses.
When the economy suddenly spirals downward and your company is no longer generating the same level of revenue, it’s time to think about costs.
Here are some common (and not so common) tactics business owners can use to reduce and control costs:
When business slows down, it’s tempting to slash marketing budgets. However, this can be a short-sighted decision that leads to more trouble down the road. In many ways, your company needs marketing now more than ever.
When the economy rebounds, you want would-be customers to turn to your brand. A robust marketing campaign ensures that prospects know about your products and services, and there are plenty of low-cost ways to harness the power of marketing.
If an economic downturn means you’ll have a smaller pool of prospects, think about how you can win over the competition’s customers. Ask questions like:
As you answer these questions, you’ll stumble upon strategies and tactics that can be used to differentiate your company from the other guys. Use those learnings in your marketing campaigns, sales decks and other customer acquisition materials.
Winning over new customers takes time and resources, so don’t forget about your current customers. There are so many ways to market to people who already know and love your brand, and here are 4 Ideas for Marketing to Your Existing Customers that you can try. With any luck, you’ll be able to quickly generate enough cash to keep your business running.