Are you having sleepless nights thinking about how to stay afloat during the pandemic? You need to understand that your business has to be made recession-proof at the earliest opportunity, because when the economy starts to collapse, it may be just too late. Small business owners are probably the worst affected as they have limited cash reserves, and when they find their sales and profits nose-diving, they may panic. The rewards and risks for businesses are never the same; so, there is no one-size-fits-all solution for everyone. Here are some strategies that you could follow:
- Control cash flow: It is worrisome that many businesses actually do not have much control over their cash flow; they have zero knowledge of how much cash reserve they have at hand. This is why almost 82% companies fail due to cash flow problems. So, it is imperative that you learn the numbers and make a clear plan highlighting your vision and profits, and identify the “lever points” so that you can pull back or push ahead as the situation warrants.
- Have multiple revenue streams: The best way to make your business recession-proof is to have more than one revenue stream. This strategy will sustain your income, regardless of what is happening to the economy. So, you can incorporate things like creating physical and digital products, affiliate marketing, ad revenues, one-on-one consulting, monthly memberships, and sponsored content for safeguarding your asset. You must not ever keep all your eggs in one basket; with multiple profit-making schemes, you can stay afloat and flexible. Likewise, you can also choose different ways of trading. For example, the cryptocurrencies like Bitcoin can be either traded manually as well as autonomously. Visit https://coincierge.de/bitcoin-lifestyle/ to learn how bitcoin can be traded autonomously.
- Invest in relationships with clients: Your job should be to identify your best clients and focus on them rather than investing money on getting new clients. If you can provide the finest customer experience to your existing clientele, they will be keen to give you more business and their word of mouth and referrals will help you to get new clients too. Getting repeat clients through superior customer support and excellent delivery services is easier and cheaper than attracting new customers. A happy customer will share his experiences with others who may become your prospective customers.
- Intention of selling the business: Your intention should be to build the company to be able to sell it eventually. This does mean really selling it off; it implies that you have successfully created something that can run without your 100% involvement. For this, you have to understand what your business is all about, whom you wish to cater to, and then putting in place systems for this.
- Build a deeper bond: One of the most effective ways to protect your business against recession is to add something unique and exceptional to your services to make it stand out from the rest. For instance, you may own a coffee shop, but given the number of cafes that are there in every neighborhood, you can include something extra, like a play area for kids, to make it more appealing to parents.
- Get finances before too late: You must never wait until you find yourself in financial doldrums to ask for loans. Lenders look forward to recessions and they will start making lending rules more stringent when it happens. So, it is wise to look for finances before it is too late.