How Small Business Should Deal With Recessions and Economic Downturns

April 20, 2020

How Small Business Should Deal With Recessions and Economic Downturns

I’m sure at this point you have “recession fatigue”. The talking heads have been debating it for months and the stock market has been ping-ponging wildly for just as long. The fear of a recession is paralyzing for some small business owners because of the possibility of it effecting your bottom line. This article will focus on a few things that you can do to capitalize on the current part of the cycle that we are in.

1. Stop Panicking!

Yes, the idea of decreased sales is something to rattle the strongest of constitutions, but don’t let it become a self fulfilling prophecy. In most downturns businesses decide to cut their budgets, which is not unwise, but cuts in the wrong areas can do more harm than good. The economy is not going to come to a complete standstill. There will still be a demand for your product or services and that is why you need to gain market share. Your competitors are waiting for you to drop the ball when it comes to communicating with your target market. Don’t fall into the trap. Preserve your marketing and advertising budget. It’s time to get serious and attract the customers that are still willing to buy.

2. Become a Better Marketer.

As mentioned earlier you will need to grab a larger share of the market. In order to do this you have to take advantage of the means and methods available. Learn how to convey the consumer benefits of your product or service in a clear and convincing way. Stop telling your potential customers about your company and it’s history and start telling them what you can do for them and how your product or service can help to fill a void, alleviate a burden or save them time and or money.

3. Start Planning.

If you are faced with some downtime use it wisely. The downturn will not last forever and by using your downtime to prepare for the recovery will help you to fully capitalize on the natural cycle of the economy. Take the time to organize and streamline the everyday procedures in your business that slow production and hinder you from taking on additional work. Position yourself to be able to handle more customers when times are better. For each business this means different things, but the idea of efficiency is broad enough to apply to whatever field you might specialize in.


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