As we near the end of 2022, something that is on a lot of people’s minds is, “How can I survive the recession?” and “How is this going to affect my business?”
Naturally, with a recession comes uncertainty but also, potentially, opportunities. Today, this is what I would like to share with you. To survive, or even thrive, during a recession, businesses must make strategic decisions about how they will face certain challenges affecting their industry and take advantage of new opportunities.
Think back to 2008, and let’s see what lessons we can learn from the recession back then:
1. Diversify your customer base
Take a moment to think about your customers, who they are, and what industries they are in. If you are focusing on a demographic that is vulnerable to fluctuation during a recession, at this point it would be good to think about reaching out to customers who will be less affected, for example, industries that thrive in a recession.
Remember, it is always easier to keep a customer than gain a new one, so it’s good to think about how to win their loyalty, especially when things get difficult.
If you do rely heavily on a small number of customers, make sure you understand their business and how they may be affected.
2. Strengthen your operating systems
One of the key factors for businesses that did survive the recession in 2008 was that they had a strong operating system. At the moment, the supply is a big headache for businesses across all industries, so running an efficient operation is a must! You would not want to waste any resources, time, or money.
Something to think about is that we are part of a business ecosystem. There are businesses that you may buy from and businesses that you sell to. We are all part of a big networking system, and by understanding each other’s needs and any issues that may arise, this may be valuable intelligence to weather this storm.
3. Protect your cash flow
Here at Pink Pig Financials, we know that the most important thing in business is to protect your cash flow. We are here to help you with exactly that and any concerns that you may have.
Back in 2008, the majority of lending was done through banks, and when they closed their books, business suffered. Today, there are literally thousands of lenders, and we are very happy to say that we have recently partnered with Swoop.
Swoop are able to offer a range of funding options, one of them being utility reviews for businesses, another hot topic at the moment with rising energy costs. Swoop has full visibility of the market, so please let any one of us know here at Pink Pig Financials, and we would be more than happy to assist you and get you the assistance that you need with your business.
It’s not all doom and gloom……
4. Keep a good attitude
As we have seen in recent years, things do change overnight. We know that recessions can be tough, but if you keep a good attitude, they do come to an end.
If you are the founder of your business, you are naturally an optimistic person. You seek out the solutions, and you find the answers!
Remember, in this recession and the next one, there will be winners. Those winners are the ones who prepare now and change their course.
