Recession Proofing Your Small Business

Hearing about the recession on the wings Listen up. Recession or not you need to run your business well. Be an  agent of convenience for your target customer, manage cash flow and pay attention to the trends in your industry. Recession is normally considered a perfect time for an aggressive approach for small business. Here are some quick tips to recession proof your small business.

  1. Keep marketing rolling . Physical and Digital .Do not be tempted to cut or eliminate marketing activities.Pursue low-cost options such as social media marketing, webinars, news releases, e-mail blasts, blogging, and online newsletters. Be sure to keep your marketing activities going at least six months so that you can track your ROI in the short term.
  • Use digital tools like Apps, CRM integrated with website or ecommerce portal and encourage customers to speak via internet as productivity improves manifold at low costs. Generate quality reports to help you monitor your business in near real time to take corrective actions .
  • Develop monthly sales goals vs quarterly goals. Do not plan and focus on sales activities beyond 30 days. Break down your sales  into number of sales to  meet the monthly revenue goals.  Through this determine how many meetings, calls, emails , blog posts you need to have/make/ send or write to generate your target sales. Keep the sales engine rolling in your business.
  • Cut expenses and track cash diligently .  It is important to understand the monthly burn rate and your cash position.  Identify the cost cutting areas  and make sure on a weekly basis that you understand what money is coming in. .
  • Reduce collection time for receivables. The long waits in a normal month are over and you need to have your money now. Once a client gets past due, get on the phone and track down the accounts payable manager for an update. Be sure you have all the payments options .
  • Add value, not price.  Continuously adding value to your and services is the way to get repeat customers and new business through referrals.  Stop adding price without value. 
  • Improve communications with your customers.  If you are B2B business company have regular face-to-face meetings with your top customers. B2C customers should prefer web based communication.Understand their biggest business challenges and look for ways you can help even if that doesn’t involve more direct business for you.  
  • Best Possible customer Care.  Excellent customer service is the number one way to beat the recession. If you do a great job and your customers love working with you, your customers will become an unpaid sales force for your business.
  • Improve networking in your fraternity .  People do business with people they like, know and trust. You need to make sure people know who you are, what you do and how to do business with you. You can network online without being considered spam. Use Twitter and Facebook Fan Pages to give out helpful advice. Successful networking is all about give to get.
  1. Consider adding staff.  One good thing about a recession is there are lots good people are on the market looking for a job.  You could pick up some quality talent right now that you could not otherwise afford.  
  1. Call the bank before things great critical.  Good relationships are made in hard times. Regardless of your business situation, you need to communicate with your bank sooner rather than later.  The bank does not benefit if you go out of business, so stop the denial and negotiate better terms with your bank.

Keep your eyes and ear open and work on introducing maximum digital platforms and tools relevant and low cost to help you achieve your objectives .IoStar experts can help you develop the right solution by reusing your existing digital infrastructure or build afresh at low costs.

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