When it comes to recessions, it’s really a matter of when–not if–another one is coming. Small businesses are particularly vulnerable to the ebbs and flows of the economy, so it’s important for those running small businesses to always be thinking about how they can solidify their business enough to sustain through an economic downturn. Here are a few strategies that small business owners may want to consider adopting in order to recession-proof their ventures.
Pay close attention to finances
Staying on top of your finances from day one is important for any business, but particularly those who are operating on a lean budget. Keeping a close eye on cash flow, creating a reasonable annual budget, and proactively curbing unnecessary spending can help businesses be more prepared for slow periods and economic instability. It’s also advisable to apply for financing before you need it, so that you have access to additional cash flow to carry you through tough times.
Clarify your value proposition
Something that many businesses fail to do is to consistently reevaluate their messaging to ensure that their value is being communicated accurately. This task may fall into the hands of marketing, but it’s important for everybody in a small business to be able to articulate and communicate the value that the business brings to its customers at all times. Make it easy for your customers to understand and convey the value that you add. This will ensure that they keep coming back, and spreading the word about your business within your network.
Take time to evaluate any of your company’s regular tasks and identify opportunities where you can be more efficient. Simplifying workflows wherever possible will make it easier to keep your business running smoothly, and having processes mapped out will give you an opportunity to add in automation that will lighten manual workloads as technology becomes available. Keep a running list of repetitive tasks that you may be able to outsource or automate– this can make a huge impact on your cash flow and save you in uncertain times.
Be open and agile
Being open to pivoting when necessary is crucial for the longevity of any business. While understanding your value proposition is crucial, it’s also important to be constantly aware of how you can expand your offering to add even more value to your customers.
Build connections with your customers
Building a customer base is one thing, but building a meaningful connection with your customers is the key to building a business that lasts! Gaining your customers’ trust and loyalty will keep them returning, referring, and positively reviewing. Remember that word of mouth is the best marketing, so make sure that your customers know that you are their number one priority. We’ve spoken before about how to show customer appreciation all year round, and one of our favourite ways to do that is through gifting of course! Our corporate gifting programs allow businesses to build more meaningful relationships with their customers through custom gifts that give back.
Available at all price points, our custom corporate gifts allow businesses to show their clients they care while demonstrating their company’s values. For more details on how to create a custom gifting program, reach out to firstname.lastname@example.org.