Recession-Proof Business Tips
5 Strategies to Help Companies Thrive and Survive in this Economy
Mar 18, 2009
What’s a business owner to do to stay afloat during these turbulent times? The responses run the gamut. Some experts advise business owners to jump ship and others insist folks ride the wave. They all agree, however, that today’s companies can’t rely on yesterday’s business strategies for their survival. Innovation is no longer an option, it’s a necessity.
Not Business as Usual
“In the past, the majority of our clients were people who wanted to start a new business,” recalls Richard Welch, district director for the North Carolina Western District for SCORE (Society of Retired Executives). “Now we’re getting more and more people who are in business that look at their cash-flow statements and realize they have a problem. Now they ask, what can I do to improve my business?”
According to Welch, small businesses must move fast and move with a plan in today’s economy. The plan, he says, is to adapt the company’s products and services to the changing market needs and quickly build a network of advisors to help the business survive the recession.
For companies that don’t have their advisors in place, Welch says hope is not lost.
Recession Strategies to Survive and Thrive
Business owners can implement these 5 lifesaving strategies to weather the current economic storm:
- Cut expenses. They key to reducing expenses, advises Welch, is to do it without impacting quality. Eliminating frivolous spending is one option. As an example, Welch says companies should get rid of first-class travel and insist employees share office space and phone lines.
- Ensure the company is meeting the customers’ needs. Poll customers to see whether their product and service needs have altered and if there are things the company needs to do differently to accommodate those changes.
- Implement smart marketing strategies. It’s easy and more cost effective to reconnect with current customers than to uncover new ones. A substantial amount of effort should be expended on trying to get additional business from happy customers and pursuing the referrals that you receive from satisfied customers. Also opt for e-mail marketing campaigns over traditional mailings and eliminate any spending that’s doesn’t get results.
- Communicate with your employees. Business owners should let their staff know when the business is in trouble. Those employees may offer valuable advice or support. “They also have an obligation to keep those doors open and they probably know as much as you do about your operation,” he insists. “Your employees are an asset and they’re interested in keeping those paychecks coming in.”
- Track your time. Calendars, lists, PDAs and other tracking mechanisms are essential, particularly in a bad economy. In fact, according to Welch, business owners should plan their day right down to the hour. “Most people let the day run them by attacking whatever comes up, but you need to stick to a daily plan,” he advises. “The most important commodity we have is time. Once the time is gone, you can’t recover it.”
For more recession-proof tips, business owners can directly connect with SCORE (www.score.org) or the small business administration (www.sba.gov).
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