Anytime there is substantial growth, it's inevitable that eventually, things will constrict or at the very least, stagnate. The economy isn't any different and although many choose to encourage fear, this isn't the time to panic.
Much like how COVID impacted (and continues to impact) businesses, we learn to adapt, and eventually create a new normal. This being said, it's important that regardless of the state of the economy, your small business is prepared.
Whether it's COVID or the possibility of a recession, the one thing you definitely shouldn't do is use it as an excuse to not take action in your business. Blaming your problems on something outside of your control might make you feel better in the moment, but it doesn't address the issue.
Paying Attention & Adapting
The pandemic reminded us of the importance of adapting. Change will happen whether we want it to or not, so it comes down to if you're willing to change with the times, or instead, dig in your heels and fight it.
Some businesses and industries actually do well during a recession. New obstacles and problems can end up providing opportunities to differentiate yourself, or offer a solution that no one else has thought of yet.
Here are 5 Tips to Help You Recession Proof Your Business:
1. Invest in Marketing
It might be tempting to cut back on your marketing efforts because you're scared to spend money, but this will create problems down the line when it impacts lead generation. Instead, be smart about what efforts you spend money on, and make it a habit to check back on the performance of each campaign. If something isn't working (or suddenly stops being as effective as it was), make a note of it, and try something different.
Some marketing activities are less expensive than others. Typically, the less expensive ones require more time on your end, so if you really need to cut back on costs, consider how you can spend more time to help make your target audience aware of your product or service (in person networking events, creating relevant content, or partnering with businesses that compliment your own), and make sure you clearly communicate how your offer solves their problem.
2. Make Sure You Have Optics on Your Business
Data takes emotions out of business and presents you with the facts. If you have optics on your business you know:
Your cash flow and accounts receivable
Current debt and liabilities
Effectiveness of your marketing campaigns
Traffic to your website and conversion rate
What content is most popular and attracts the most views
Where your target audience is spending their time (TikTok, LinkedIn, Facebook, Reddit, etc.)
Current sales cycle & time for fulfillment
Efforts to engage with current & past customers
3. Put Extra Care Into Customer Service
You and your team might be feeling overwhelmed, but it's important to take extra time with your customers. Remember to slow down, listen and keep in mind that you're a team with a shared goal.
Consider ways in which you could go above and beyond for your customer, and how you could make your service or product as memorable as possible.
This is a great way to encourage referrals, positive reviews and return business!
4. Engage with Past & Current Clients/Customers
It's always important to reach out and listen to your customers, but it's crucial to understand their struggles with the possibility of a recession.
Pay close attention to their biggest problem and consider how your offer could help get them to a happier, more comfortable future state. This will also help you cut down on your Customer Acquisition Costs (how much you spend to acquire new customers).
5. Let Go of the Unnecessary
Review your expenses and see what you can do without. Chances are there are subscriptions that you've signed up for and forgotten about that add up, membership fees that don't currently serve you, or maybe you're still holding onto office space when you could embrace a virtual model.
In 2018 we let go of our office space in favor of working remotely and saved $21,900 a year in rent alone.
Consider what things are "nice to haves" that you're spending money on, and if cutting those costs would help you feel more comfortable and optimistic about the future.
Positive Mindset Manifestation
Negative thoughts and fear keeps you stagnate and unhappy. In order to bring what you want into reality you have to know exactly what you want. There are 3 key steps to positive thinking:
From these steps you'll be able to create a clear picture of what needs to happen to make your goals happen. It's true that no one is going to show up with a magic wand and magically make everything better.
BUT, we're big believers in the fact that once the universe knows what you want, it has a funny way of brining things and people into your life to help make it happen.
When faced with uncertainty, see what positive thinking and the willingness to adapt can do!
Need help brainstorming ways for your business to adapt to the new normal?
We can help! We're Wix Legend Experts with 17 years experience in building successful businesses online. Book a free strategy session with our team to get started. Our goal is for you to leave the call with actionable steps you can take to improve your business.