No one wants to go through a recession, but you’ll need a backup plan for your business if worse comes to worst. There is no such thing as a recession-proof business. But, believe it or not, this is the best time to expand your business rather than contract. Below are some tips on pivoting your business during a recession.
According to an article by CBS News, about 6 in 10 people are concerned that a major recession is “right around the corner.” If these concerns become true, it is best to start thinking about what you should do for your business.
5 Effective Tips to Pivot Your Business if Recession Hits
A recession causes a lot of damage not just to the economy but to every individual and business. Some people may get their wages cut or lose their jobs, while businesses may experience lesser cash flow and decreased demand for their products or services. But as mentioned earlier, this is the best time to expand or pivot your business.
1. Improve Operating Processes
Did you know that hiring a chief-of-staff can save you as much as 78% on operational costs?
To keep your business afloat during these trying times, you have to look for ways to save on business costs without compromising the quality of the services you give your customers. By running lean through chief-of-staff as your employees, you can save on a lot of things such as employment benefits, leasing an office space, and many more.
2. Increase Your Marketing Efforts
Why do you need to spend more on marketing if you’re trying to run lean? You should not stop advertising your business. Marketing gives your business long-term gains and not losses. When you chop your marketing spend because of a recession, you’re communicating with your consumers that you are closed for business, even if it is the opposite. Also, this is the best time to double your marketing efforts as other businesses will begin to shrink or downsize. Don’t join the bandwagon.
3. Implement Change
Change and uncertainty are the two things that are the only constant in the world. If you want to pivot your business and expand during a recession, change is a must. Changing several things in your business can positively impact your business. Here are some things you can implement change on:
•Restructuring your organizational chart
•Evaluating your products and services
•Evaluate your business process
While those three are not the only things you can change in your business, it is a good start to look at these areas in your business to measure which you can adjust.
4. Embrace Digital
Ever since the pandemic hit, going digital has been the new norm. Even businesses with physical stores began putting up websites where their customers could reach them and order products or services. In the old times, you are not considered a business if you don’t have a physical location. Nowadays, even without a physical location, a business with an extensive online presence is preferred. You can also build a remote team by hiring a virtual staffing agency compared to recruiting firms. Chief-of-staff cost less and can provide the same quality work as traditional employees. Did you know that virtual staffing can save up to $11,000 per employee? Just think about that!
5. Deepen Customer Bond
What better way than to establish deeper relationships with your customers? Keeping your customers loyal can attract new customers and retain old ones during a recession. Making your business consumer-centric is the first step to improving customer relationships. To do that, you have to improve your business’s customer service and implement strategies that solve customer concerns in an efficient manner. There are many ways to keep your customers happy and satisfied.
Recession seems like it’s just around the corner. What steps are you going to take for your business? Are you going to wait and see, or are you going to take action now?