Business strategies for economic downturn

No one likes to think about an economic downturn, especially when things are going well. But the unfortunate truth is that it’s inevitable: the economy goes through ups and downs, and so do businesses.

Don’t be discouraged though. By putting sound strategies in place, you can help your business become sturdy in the case of an economic downturn. We have a number of financial planning solutions to share with you that can help your business stay afloat during tough economic times.

Strengthen your customer base

Providing quality customer service is so important for keeping your existing customers. Having a strong customer base is an essential part of making it through economic hardship. Treating existing and new customers with stellar service will reap you long-term benefits: they’re more likely to keep coming back and promote your business to others. 

You might consider having a loyalty program, or putting in place strategies for following up clients after a sale.  

Don’t rely on one customer

While it’s important to make your existing customers happy, it’s also important your business isn’t dependent on just one customer. What would happen if you lost that customer during an economic downturn? It’s great practice, whatever the state of the economy, to diversify your customer base to ensure you won’t be left without sales. 

Don’t rely on one main supplie

Similarly, don’t rely on just one supplier. In an economic downturn, you don’t know if you’ll be able to count on them as solidly as you have before. When you’ve got multiple suppliers you can turn to, if one falls through, you’ll be alright. 

Build relationships with other businesses

It’s tough to get through hard times by yourself. Networking with other businesses can give you a sense of community and may provide financial planning solutions you haven’t thought of. 

You might be able to trade ideas on how to cope, or you may be able to make mutually beneficial arrangements. Building strong alliances with other businesses is pivotal to doing well at anytime. 

Treat your team well

A healthy, motivated team is essential for business success. In times of economic downturn, it may seem the only way through is to lay off some employees. Before you turn to that, communicate clearly with your team about what’s happening and try to involve them in the problem solving process. If you treat your team well, they will likely go the distance with you through the hard times. 

Make use of free marketing tools

Get measurable results from your marketing strategies to make sure you know what’s working. That way, you can put your resources into what’s giving you the best results. 

Reduce your marketing costs by making use of the free marketing tools out there. Social media and a robust Search Engine Optimisation (SEO) will go very far. Also, don’t underestimate the power of word-of-mouth and positive reviews. 

Seek assistance with a business advisor

If you’re finding it difficult to cope during a time of financial hardship, talking to a financial advisor can help reveal the light at the end of the tunnel. 

At Lawrence Group, we’re here to help you make sense of the situation and provide financial planning solutions so that you can move forward with confidence. If you’d like to talk to one of our financial crisis specialists, get in touch today. 

This article is general information only. It does not give business, accounting, taxation, financial planning or other professional advice or service. It does not consider your specific situation, objectives or needs and if personal advice is required, a detailed analysis of your particular circumstances would need to be sought. Please see our Privacy and Disclaimers page for further information.