Economic Slowdown in India Consumer confidence can decrease over time if you don’t properly run your business. Decreased sales threaten all businesses, be it small or large, but small businesses are particularly susceptible as they often don’t have the required cash reserves to help them beat difficult times. How can you recession-proof your business? How can you tap into business opportunities during a recession? What are some good businesses to start in a bad economy? In this article, we discuss best practices to recession-proof your business. Ensure your small business’s survival—all the while allowing it to thrive during tough economic times. 1. Protect Cash Flow It is important to protect your cash flow. Keep an eye out for what’s coming and what direction your business is moving. Be aware of changing economic conditions. Prepare cash flow projections in advance. This will help you to visually see what you need, and the changes that need to be made in order to meet that cash flow. Keep an eye on your cash outflows and see ways to maximize your cash inflows. Collect receivables sooner. Stop giving your clients free credit at the expense of your business’s survival. Also, be professionally aggressive in your cash collection processes. 2. Don’t Let Go of Your Existing Customers It is important to keep an eye on your business expenses and cut expenses wherever possible. But it is equally important to not cut so much of your business expenses that you can no longer service your most loyal customers. Now is the time to put your business vision into action. Remind your customers why they chose you in the first place. Whether your service/product is the most cost-effective, or you offer a premier product or superior quality service—remind your customers of the exceptional value you offer. Let you know to Exceed Customers’ Expectations here 3. Important—Keep Your Best Customers Even Closer The loss of your best customers—which translates to your biggest accounts—could be disastrous for your business. Find business opportunities and strategies during the recession. Call, email, or send a discount card to your best customers. An example would be to tell them how much you appreciate their loyalty and continued patronage. Let them know you’re willing to work with them. think of a long-term contract—this is a great opportunity to keep your best customers! Another idea would be to offer to buy them lunch or a cup of coffee to discuss your current and future business relationship. 4. Lower Inventory Costs See how much cash is tied up in inventory. Lower your inventory costs, wherever possible. For instance, you may be able to reduce the amount of inventory you are holding, thereby releasing much-required cash. Are you ordering too many of particular products? Can a change of suppliers/vendors provide you with reduced expenses? While you are at it, you might even consider settling your worst selling products. 5. Revamp Your Marketing Campaign Slow business calls for new marketing campaigns. Consumers behave and spend differently in a recession. They want to get more value for their moolah. Position yourself as a great value provider. Highlight the amazing value for money you offer in every marketing campaign. Drive this message deep.
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