For most people, and small business owners especially, a recession is enough to bring out a case of cold sweats and ultimate panic mode. As an entrepreneur and small business owner, you may have never experienced a recession with so much at stake. But, as we know, making money when times are good is a lot easier than in an economic downturn when times are tough. The good news is that there are ways to help ensure your business survives a recession and thrives in one.
Focus on your cash reserves
Generally speaking, cash reserves are built in advance in the planning stage and require some foresight. However, you can look for ways to tap into funds you don’t readily see. For instance, try looking at your finances and identifying how many unpaid invoices are outstanding. Then, follow up with clients for payments, and if any need help to honour their accounts, see if you can work together to create a win-win solution. For example, a payment plan goes a long way to keep customer relations healthy and ensures cash flow for your business.
Maximise your most profitable functions
Without the motivation of a looming recession, it can be very easy to become lazy about what’s happening in your business. Occasionally, you or your employees might focus on tasks outside your skillset – tasks which are not as profitable as your bread-and-butter work.
Imagine if you’re a roofing contractor and you’ve been looking into digital marketing and trying out different ways to reach and engage new customers. Unless you’re a marketing whizz, your time is taken from where it’s most valuable: talking to existing and potential clients about their roofing needs. Instead, you’re busy figuring out social media management or attempting to write SEO-optimised blogs for your website.
Ensuring that you and your employees focus on productive tasks is a great way to ensure you’re not haemorrhaging cash unnecessarily.
Have a sturdy client referral programme in place
Once someone has engaged with your business and signed on, you need to do everything you can to keep them happy. This is important all the time, but even more so during a recession. Referral and repeat business are most important because people become high-risk averse when money becomes tight. One way to avoid disappointment for them is to ask a friend for a recommendation.
Use a recession to re-engage with your customers and follow up on old leads. You may discover new information that could improve their experience with your business or a change in needs that now falls within your scope. If you’re in B2B, find ways your business can support theirs while adding to yours. If you’re B2C, encourage customers to spend now to save later and future-proof themselves.
A recession can be a scary time for a small business owner, but with careful and strategic planning, you can ensure you’re still on your game and supporting your clients and business through tough times.
AVirtual Virtual Assistants are a cost-effective solution to keep your small business operationally sound during an economic downturn. You get the benefit of flexible, dedicated business or personal support without any HR hassles or extra costs.
Your virtual assistant can take on as much or as little as you like. With a varied range of expert services available, including social media management, you can have it all. Contact AVirtual today to book your free consultation.