SME Owners – How can you make your business ‘recession proof’? Here are 12 ways.

SME Owners – How can you make your business ‘recession proof’? Here are 12 ways.

SME owners, you will know yourself whether your industry tends to be ‘recession proof’ or not.

Understandably construction and new car sales suffer in a recession, for instance, whereas fast food outlets and bookmakers do well and pawnbrokers positively thrive during an economic downturn. There are no guarantees in business but if you implement the 12 measures below you will make your business more ‘recession proof’.

1. Introduce entry level products or services – it’s worked for BMW and Mercedes, who not your business?

2. Build up or expand the e-commerce side of your business; lower overhead means more potential profit.

3. Use customer segmentation to identify your most loyal customers and products/services and then strengthen the relationship you have with them by communicating with them more and creating bespoke offers and messaging for them.

4. Staffing – Thinks scalability upwards and downwards – plan for a flexible workforce that can be increased and decreased without too much of a lead-time.

5. Automate basic functions – email marketing including auto responders is a prime example.

6. Outsource when possible without compromising service levels. You could consider outsourcing ‘live chat’, for example.

7. Financial exposure – Limit this for the time being. Planning to rent another premises or a larger premises? Why not consider introducing an additional shift at your existing premises?

8. Continue marketing – Whatever your current level of business activity create and implement a programme of activities designed to attract more customers. This article will give you some pointers.

9. Expand your marketing ‘footprint’ by establishing a partnership with a complementary business. There’s more information on that here:

10. Ask your happy customers for testimonials and referrals – word-of-mouth advertising is very powerful and extremely valuable but you must request them.

11. Improve your cashflow by implementing some or all of the measures listed here:

12. Remain upbeat and an inspiration to staff, partners and customers. So much of business is based on confidence – it is essential that you instil this in others.

We hope you find this information useful.

Kind regards,

Marketing Fundamentals Team

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