The economy is not perfect; it goes up and down; it stays steady and moves unexpectedly where you weren’t expected. When everything goes south, the smaller player suffers the most.
Small businesses are prone to closure in the recession because they have limited resources to strive, especially within the hard times. It’s not impossible to survive in the recession, and it’s not easy as well. The company that managed to stay afloat or strive within these times will either done things differently, successfully communicates its values to its customer, or have enough resources to operate within the restriction.
To survive and strive within the recession, Small Business should look into the following areas:
1. Take your business online and shift your resources in online marketing.
2. Find ways to improve your relationship with your current customers and work word of mouth in your favour.
3. Review and simplify your marketing strategy.
4. Invest in content marketing (This takes time but paid off in the long run, also it's one of the most sustainable ways to grow your business)
5. Utilise business network.
6. Collaborative marketing: join force with other businesses
7. Adjust your employee’s shift base on demand. Does not apply to full time workers.
8. Manage your inventory
9. Offer discounts on old stock
10. An employee temporarily pays cut or shift the paying structure. E.g. commission.
11. Restrict or eliminate account receivable (E.g. account payable and receivable).
12. Eliminate liabilities that don’t contribute value to the business.
13. Offer incentives to employee's performance.
14. Invest or implement new learnings.
15. Communication (Make sure everyone understands the compromises and directions).
16. Put your negotiation game on (Reduce rents, collect your account receivable sooner).
Treat these ideas as tactics to survive within the recession. Please choose the one that is most relevant to your business and apply it strictly. Context is everything, and your priorities should be the principal motive in choosing your tactics. Remember to consider your resources, business systems, stages as well as the business environment in your decision process. I hope this helps.