Unless you have been living in a cave for the last 18 months, I’m sure you’re quite aware that Covid has impacted most businesses, large and small, in some way or another. So, how can we weather the storm as business owners? Things are improving but not quick enough for many, so how can we be one of the ones who come out of it stronger than ever… and… (scare monger alert) be prepared if/when things take another down-turn!!!
4 ways to recession-proof your business
- Increase your efficiency and reduce your overheads
I know, I know – this is a very “accountant” thing to suggest, but read on… The best changes that you can make for your business during a recession is to cut your overheads in a way that will increase efficiency. Easier said than done? Have you looked at your processes to see what can be automated or eliminated? Automating certain processes will cost initially but they will increase productivity. The same goes for things like outsourcing and offshoring.
Don’t forget to involve your team in this process. Ask them every week what they think can be improved on and you’ll see that they will have some great ideas.
Another task that you can do which will cut overheads is to get tough with those late paying clients and low-performers. If you tackle these head-on, you may find that costs will reduce while efficiency soars.
- Make it easy for your clients to pay little and often
Clients will say they have no money (they are struggling too), but you will find that they do for the right service. If you swap your services for ones that they really need now, they will see you as essential and they will pay for your service. You can also help them in other ways such as switching them over to a direct debit payment method or by giving them a payment holiday on their normal monthly payments.
- Change your mindset (and quickly)
Henry Ford said “whether you think you can or you think you can’t, you’re right” and it’s true. If during a recession, you think that you are going to come out of it, then you will. Just make sure to surround yourself with people who support you and reconnect with why you started your business. It will make a positive mindset so much easier.
- Increase your own marketing activity
We maybe preaching to converted here but avoid the temptation to cut your own marketing to save on costs. It could do more harm than good. Any recession (Covid related or not) will show some clients that they aren’t getting the service that they want so how can you expect to win them if you’re not marketing yourself?
Increase your marketing in the right areas. For example, refresh the copy on your website, review your marketing to see what is working the best, send out weekly emails to your clients, call them every month, call prospects who went cold to see how they are doing, and increase your activity across all social media channels.