These 14 business strategies during recession times will keep your business on top.
1. Double your services specialty to premium clients
Now is the time to double your activity. It’s time to bring the big guns out. Be courageous and eat your competition by servicing even more. Follow the saying, “work while others are sleeping.”
2. Make a list of unnecessary expenses
Prioritized spending is the key. Cut down on expenses those are not important and not urgent. Instead allocate budget for important expenses ahead of time.
3. Lower your advertising expenses
Seek to find lower costing advertising tactics. One option is open your business to advertisers who will offer a better quota for a cheaper price. Explore the web for such companies. There is bound to be one who will give you such a bargain.
4. Focus on basic necessity consumables
Even in times of recessions, consumers still shop and buy. In these times of prioritized spending, they focus most their resources purchasing basic necessities. A wise business owner would focus on BNCs.
5. Become an efficient collector
The longer it takes for a customer to settle an amount the greater the chances of him not being able to settle at all. Focus more on cash payments.
6. Study your customer needs
Are your customers looking for quality or quantity goods? Quantity goods for lower prices mean selling more in volume to make profit. Selling quality goods for higher prices mean selling less but you’ll have fewer customers.
7. Look for consignment deals
This way you can stock on items without buying them and return unsold items to your supplier. This means your money won’t sleep in slow moving items.
8. Order frequently but in smaller quantity
If you do have to buy some stocks for your business, order in smaller quantities. It’s better to order frequently and lose a little money in shipping than lose lots by purchasing bigger quantities without guarantees of moving them fast.
9. Offer the best price
Be competitive with your pricing offer more value. Determine if you want to make profit from selling low by moving a lot of items or selling a few items with a higher price. Selling a lower may mean selling to 10 clients to break even compared to selling to 1 with a higher price.
10. Keep your customer coming back for more
Evaluate your service and think how you can offer more so your customers become repeat customers instead of a one time sale. Try using incentive programs like membership cards that accumulate points for certain free items for a certain number of points purchased.
11. Accelerate debt payments
Before even recession occurs, focus on eliminating debts by accelerating payments.
12. Explore flexible scheduling and telecommuting
Instead of downsizing, explore options that can save your business with some expenses like fuel cost and electricity but still enable to perform their work.
13. Look for tax breaks
Consult with a tax expert and look for ways to find more tax deducts. Invest on an efficient recordkeeping system that can track down on your expenses by category and keep record of your receipts.
14. Learn to bundle
Create a package strategy by bundling slow moving products with fast moving products for a slightly higher price. This way you get to liquidate you slow items.