"Downturn" and "recession" are words that can strike fear into business owners, but economic fluctuations don't have to be disastrous for your firm. Let's take a look at some of the tactics used by businesses that thrived during the recession of 2007 to 2009.
1) Meet your Target Market's New Needs
In a downturn, your prospective and existing clients will also be searching for ways to weather the financial storm. If you can help them to do that, they'll want to work with you. Netflix, for example, boosted its earnings by more than $21 million between March 2008 and March 2009, because the firm focused on renting out DVDs and streaming content for less than its competitors at a time when consumers had been forced to tighten their belts.
Make sure your leads know how your product or service could benefit them in the post-pandemic world, whether due to its convenience, or to its cost-reducing or profit-increasing power. Don't panic and dramatically reduce your prices or offer deals that you can't afford, however; you should be aiming to improve your bottom line. Instead, add value to your offering where possible and explain your product or service's unique selling point (USP) clearly.
2) Keep Innovating (and Smiling)
It can be tempting to take fewer risks in a downturn. However, launching innovative products or services, or targeting different industry sectors or geographical areas could give you the competitive edge. Be optimistic about your ability to survive, adapt and succeed. Some exceptionally successful companies were established during the 2008 Recession, including Groupon, Uber, and Airbnb, so great propositions can succeed. If you'd prefer to keep your innovations simpler, experiment with different sales tactics or marketing material to generate extra sales.
However, assess the pros and cons of any ideas that you have thoroughly before taking the plunge. Don't rush to change your business strategy just because you're worried about economic changes that may never happen. The reality on the ground is rarely as negative or clear cut as the picture journalists like to paint in the main newspapers, websites and blogs! Gloom sells newspapers but doesn’t grow businesses.
3) Invest in Sales and Marketing
While keeping an eye on your budget is a must in a downturn, so is generating new business. It may even be wise to increase your sales and marketing spend. If your competitors are engaging in fewer marketing activities, your promotional material is more likely to be seen by prospective customers. Therefore, you could increase your market share.
Start Growing your Business Today
You may be also able to take advantage of lower advertising rates or recruit high-quality staff who have lost their jobs elsewhere. However, to ensure that you're spending your budget wisely, hire a business growth partner, such as JDR. We can provide you with tailor-made advice and outstanding services so you can maximise the return that you're getting on your investment.
Image source: Unsplash
