10 Top recession proof tips for small businesses in a time of uncertainty
How you can recession proof your business
When the next recession hits, will your business be ready?!
Corona virus is spreading, and worldwide panic is increasing.
I’m not an expert on global viruses, but I do know a thing or two about surviving and thriving in business during a financial crash and successfully riding the wave that is coming.
Here are my top tips for you if you have a business of any type during this challenging period in history.
– Remain level-headed
– Stick to credible news sources and updates
– Audit your existing business model
– Assess your current and target customer base
– Diversify your offerings and buying option
– Pivot IF necessary
– Sharpen your sales skills
– Ring fence your proactive sales time
– Prioritise building relationships
– Sell with integrity
1. Remain level-headed ⠀⠀
The good old British motivational posters put out by the government during World War 2 apply as much today as they did back then, keep calm and carry on.
Panicking not only affects your decision making, but causes stress that can weaken your immune system.⠀
Healthy you, healthy business.
Keep calm and carry on – recession proof businesses will survive!
2. Stick to credible news sources and updates
If necessary, avoid the news except for credible sources for updates at scheduled times only so you don’t over consume unnecessary information and sensationalist headlines.
The same goes for social media. Seeing and hearing all the hysteria just adds to the feeling of panic, so be mindful of your exposure to it and use your time finding solutions, not predicted problems.
There are lots of people online giving advice right now who have never ran a business, worked in business, or sold during a recession in their lifetime. These people will have no clue what to expect, or how to navigate or pivot when the economy is in a downturn. Even if they have made X figures posting pretty pictures online during a buoyant marketthey are unlikely to know what to do for the best now, for themselves, let alone you.
3. Audit your existing business model
Now is a great time to review your business model to assess strengths and weaknesses.
What is working still?
Has any area become redundant due to the current situation?
What are your clients and customers main concerns, and can you provide a workable solution to their needs?
4. Assess your current and target customer base
Does a large percentage of your revenue come from a small number of your customers?
If so, your business is vulnerable.
If you lose those key clients during an economic downturn, your business will struggle.
Start to make plans now to reduce the vulnerable areas.
Examples include retainer agreements at a discounted rate to prioritise longevity of contracts and a better deal for your client, one to many models (if applicable to your products and services) and improving the customer experience to remain a valued asset to your current and prospective buyer.
5. Diversify your offerings and buying option
Are you in an industry or niche vulnerable to losses in the current climate? If so, now is a great time to diversify.
Take some to ‘get out of the bottle so you can see the label’.
Get creative and see the opportunities available.
Really listen to feedback and suggestions from your industry peers and existing community of previous and current prospective markets.
Put simply, meet a market need.
6. Pivot if necessary
Yes, you may have noticed everyone, and her neighbour is pivoting, but only pivot as necessary once you have assessed the above points.
As the saying goes, if it ain’t broke, don’t fix it.
This really does apply to quick pivots in particular; be sure any brand changes are well thought out and researched beforehand.
What I am advising is, don’t panic pivot!
Simple adaptations may be all that are necessary to future proof businesses.
7. Sharpen your sales skills
Do you or your business have a working sales process that generates revenue outside of existing customers, or referrals?
If not now is the time to equip yourself and your team will new business sales skills.
Working with hundreds of SME’s and corporates, plus thousands of business professionals at the forefront of the last financial crash, a key takeaway was only those who had a newly assessed business sales process survived.
The same will apply to online entrepreneurs this time around.
Your sales processes will likely need tweaks to account for the current climate.
Budgets are tighter, emotions are high and not only will your business model likely change, but your buyers will too.
Being mindful of this when taking your prospective buyer through your own sales process is paramount for optimum customer satisfaction and conversion rate.
You can access my free Sales Swag to get you started.
8. Ring fence your proactive sales time
Ensure you or someone in your business is doing ring-fenced sales time consistently.
No fluffing around.
No posting and praying on social media platforms.
No hanging out ‘giving value’ hoping someone will buy.
Real sales time to keep your sales pipeline full.
Strategic and proactive selling will get you through this.
If you want to learn more about this then my Sales Bootcamp is the place to be.
9. Prioritise building relationships
As I always say sales really is just relationships with a transaction. Now more than ever you will need strong relationships with your clients, prospects and peers.
Don’t overlook the powerful currency which is your relationships.
Nurture existing and new relationships to open opportunities and networks, creating strength in numbers and true connections.
We are stronger together, now more than ever.
My free community for freedom-focused entrepreneurs is a great example of a supportive community packed full of business training, resources and interactive live workshops to assist your business journey.
10. Sell with integrity
In times of panic people can lose their manners, integrity and humanity.
When all this is over, your people will remember how you conducted your business, think long term brand association, not quick wins to stay afloat.
And finally, try not to panic or bury your head in the sand, don’t be the Blockbusters of 2020! There will be challenges but together we can do what we can to ride this storm.
There will always be good times and bad times, we must sit this out actively, not passively.
Please share this with any business friends, peers or clients you think would benefit from these recession-proofing tips.
Take care. We will get through this together.
If you would like my support in how to survive and thrive during these uncertain times I have started a free support line where I share key updates, life workshops with me, and resources and training specifically focused to help you successfully navigate the current climate to recession proof your business.