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Many businesses are affected during hard economic times, but startups take the worst hit because they lack the coping mechanism that established businesses already have. When the situation worsens, consumers lose confidence and sales start to decline. Your business can survive these times if you adapt to the new changes. If you are feeling like your business is struggling, read on to learn the actions you can take to survive.
Evaluate Your Marketing Strategy
During hard times, small businesses usually first think about cut down on marketing costs to reduce business expenses. However, during these times it is important that you still market your business more to let people know that you are still open for business.
During tough economic times, consumers have different buying behaviors which need to be put into consideration. Ensure that you are using marketing strategies that reach your customers. You must analyze the current consumer buying behavior and implement marketing strategies.
The following are examples that you can adopt during these tough economic times.
- Use social media marketing tools effectively and design marketing campaigns that increase interest so that customers visit your website.
- Produce SEO content so that you can optimize your website for search and people can find you on the first page of Google.
- Increase customer loyalty by having sales offers, discounts, referral bonuses and other unique programs.
- Use email marketing strategies.
- Look for creative ways to reach your target audience.
Focus on Competitors
It is important to know what your competitors are doing. Check out the strategies that your competitors are using to market. Not what they are doing and be vigilant of emerging trends.
Analyze Your Financial Situation
Calculate your cash reserve and have a projection of how long it can sustain your business if something bad happens. Next, make a sales projection to see if the cash flow will be enough to cover the business expenses in the coming months.
Monitor your finances by doing the following:
- Check your budget every month and that your income exceeds your expenses.
- Evaluate your products to find out what is selling and what is not.
- Watch your debtors and follow up on those that need to pay.
- Review your expenses and see if there is anything you can minimize or cut.
Improve Customer Service
Customers are important to your business, so it is important that you maintain contact with them during tough times. Keep your website updated with the information a potential customer wants. You want your clients to feel that they are appreciated. Reach out to old customers and ask for feedback.
Seek Financing
You startup will only survive if you have enough cash flow. You must look for alternative ways to secure finances. Seek financing early because investors have strict investing policies so it can take longer than expected. There are many financing options you can consider such as working capital, business lines of credit, SBA loans, and more.
Engage Your Employees
Have an honest conversation with your employees and let them know the challenges the business is facing. An honest conversation can help you move forward by getting different perspectives on the challenges and solutions that can work.
Network
Connect extensively with the stake stakeholders within your industry. Be intentional when interacting with others and let them know what you are offering and where you can be found. By establishing partnerships, you can take your business to the next level.
The Bottom Line
Hard economic times can affect businesses no matter what the size is but startups are affected the most. No business owner wants to face shutting down their business but luckily if you apply the actions above, you can help your business succeed during tough times. Remember that the economy recovers at some point but until then you can sustain your business by implementing the right strategies to keep you afloat.
