7 Ways to Make Your Business Thrive in a Harsh Economic Climate

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Calling the present-day business environment though would be the understatement of the century. As a matter of fact, with the effects of the global pandemic still lingering around and countless slew of new problems on the horizon we could think about a couple of even harder words to describe the current situation.

But, things don’t have to be all that grim. As the famous Roman emperor, Marcus Aurelius once said – “The impediment to action advances action. What stands in the way becomes the way.”

In other words, creative thinking can turn every obstacle into an opportunity to push forward taking a different route forward. Well, let us then take a look at a couple of ways you can use the ongoing financial turmoil to help your company thrive.

Stay focused on your goal

The times of turmoil far too often cause companies to make knee-jerk reactions and try to keep up the pace with the rest of the market by constantly refocusing their goals. This is a huge mistake. Even though you need to be lean and flexible, your efforts need to be consistent and focused on long-term goals.

Therefore, be sure to pen down the comprehensive business plan and outline major business milestones and objectives. You will adapt the methods for reaching these goals as time goes by.

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Make your company scalable

Essentially, your organization needs to be able to quickly adapt to whatever the market has in store for you. You can achieve this in a couple of ways, but we say that compartmentalizing the business and outsourcing the non-critical departments is a good way to start.

Also, moving to cloud-based infrastructure will put your operations on a very flexible, subscription-based, or pay-as-you-go model and allow you to expand your resources with a couple of clicks or scale down just as quickly and simply.

Set up contingencies

This move separates the companies with strong legs from the ones that leave the race after falling over the first obstacle. So, it is very evident that the present-day world is very unpredictable. Your job is to protect your organization from all possible disasters. So, try to think about all the problems you might face and start looking for contingencies. Exploring the different insurance options, establishing strong business relationships, and backing up and protecting digital resources are good places to start.

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Ensure an uninterrupted cash flow

Cash flow is the heart pumping blood through the veins of your company. This is the area where you can’t make any mistakes. Look then for ways to keep cash flow alive and kicking. For instance, you can offer your clients discounts for early invoice payments.

If you are still unable to collect enough money, debtors financing services can prove to be an incredibly effective short-term contingency. The items that aren’t moving enough cash should be let loose. Just do your best to keep the money flowing.

Build up your brand

People are very emotional beings. As a matter of fact, some surveys say that as much as 95% of all purchase decisions are coming directly from the subconscious mind. So, while your strategies should always keep some clear short-term objectives in mind, your long-term goal should always be to build an engaging and relatable brand capable of rallying people around.

For that to be possible, however, you really need to know your audience as well as the strengths of your company, so start with these two.

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Win over the competitors’ customers

The desperate times call for desperate measures, and the recession knocking at our doors is more than a good excuse to start winning over clients from your direct competitors. Once again, this move requires an excellent knowledge of the audience you want to appeal to.

Do your best then to learn what keeps people coming back to your competitors and what benefits they find enticing. When you are done, making the necessary portfolio and marketing adjustments should be more than simple.

Make the most of existing customers

Last but not least, we would like to remind you that, while winning over new customers is great, the existing clients are what keep your company afloat. Speaking in cold numbers, 61% of SMBs report that more than half of their revenue comes from repeat purchases. If you are looking for a way to recession-proof your business, you will hardly find a better pick than this one.

The ways for keeping people coming back for more include the usual mentions like discounts, loyalty campaigns, and referral programs.

Final comments

These were the top six ways to make sure your organization is capable of dealing with the current crisis and even using the upcoming recession to its advantage. This will not be an easy task and you will need to work incredibly hard to get to the finish line.

But, knowing which route to take and how to leave as many competitors behind should definitely make even this kind of effort easier. We hope we nudged you in the right direction.

By Mike Johnston

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