Practical Tips For Business Owners To Survive A Recession
Written by: Laura Kingston, Executive Contributor
Executive Contributors at Brainz Magazine are handpicked and invited to contribute because of their knowledge and valuable insight within their area of expertise.
Does your business strategy fit the current economic climate? If not, it might be time to make some changes… No one needs reminding about what challenging times we’re currently facing in the UK economy. Many businesses are being hit hard, so how do we survive, and perhaps even thrive in the circumstances?
Demonstrate energy without panic
The headlines can be daunting, but there are still customers out there and money to be made.
Where? Repeat business should be your mainstay so talk to your current customers and find out what their problems and/or changing priorities are.
Some questions to ask your customers:
What are their issues, and how can you help?
Are they looking for better payment terms?
Can you offer them any additional services to support them?
Are they making cuts to staff or suppliers that you could supplement?
Who do they know that could use your services? Difficult times cause businesses to review all current suppliers, so be waiting in the wings to demonstrate the value your business can add.
If you have doubts, gently assess if they are still stable.
Is there a chance that they’ll be unable to pay for the services you provide leaving you with unpaid invoices? It’s a hard conversation but better to know now rather than waste the resource of your team. Is there a way you can help them without compromising your own business?
Some questions to ask your suppliers:
Can they reduce their charges or give you better credit terms if you’re having cash flow issues?
Can they provide services that you are currently paying more for? (The reverse of what you asked your own customers)
Get business intel: Do they know of competitors in your field that might be closing down and whose customers you can approach?
This is a time when communication is critical. Talk, look for opportunities, and try to help where you can. It will often come back ten-fold.
Review your costs
The fastest way to save money and increase profit margin? Don’t spend on anything unnecessary.
Guard every penny with your life but try not to compromise your brand or future – instead, analyse the most cost-effective ways to promote your business in every way you can. This is not a time to appear scared, even if you’re stressed.
These are judgement calls that only you can make but for example:
What support services could you deliver in house?
Challenge your suppliers’ charges – are you getting enough value?
Scrutinise travel costs and expenses.
Can you upskill yourself or a team member on anything you outsource to an agency?
Reducing your costs eases cash flow, giving you a feeling of great control and allowing you to become more competitive to retain and win customers.
Assess your team
A recession is a reality check for your workforce as well.
Talk to your team about the challenges your business is facing and how they can help.
They have the same worries as you and if they’re the right people, will want the business to survive. So, get everyone to roll their sleeves up together – you may be surprised how creative and insightful your team can be and this is a great time to bring that out.
If they are important to the business, tell them that. Reassure them so that they aren’t afraid to make even radical suggestions to improve the business.
Unfortunately, on the flip side, any underperformers need to be told supportively to up their game or they put both their job security and your business in jeopardy.
Some questions to ask yourself:
Is each employee earning your business more than they cost?
Am I leading the team as effectively as possible to ensure maximum performance?
If a team member handed in their notice, would you be stressed or relieved?
If it’s relieved, then you need to take control and either work with them to improve their performance or say goodbye.
This is a wake-up call, and now is the time to work harder and hopefully smarter. Believe that you will make it through, don’t let the headlines get to you and use that energy to focus on your business.
Laura Kingston is the Founder and Managing Editor of High Life North Magazine.
Laura Kingston, Executive Contributor Brainz Magazine
Laura Kingston is an expert in disruptive digital marketing, online publishing, trend analysis and leadership. Her expertise is in identifying key trends and implementing them into businesses to keep them ahead of the game. Laura specialises in building effective teams to ensure high-growth, high-energy businesses. She is Managing Editor of High Life North magazine which is disrupting the Northern publishing industry in the UK, providing an online platform to empower women and champion independent businesses.
