5 ways to strengthen your business during an economic downturn Aug 30, 2022
Recession is probably one of the scariest words for every business around the world. As the US inflation rate is hitting a four-decade high and the country’s stocks are taking a beat, and there are ominous talks about another US-led global recession.
Australia has successfully escaped the effects of such a recession twice in the past fifty years. Yet the current uncertainty surrounding the property market and the rising inflation have started hurting consumer confidence in the Australian market.
After analysing 75 years of data, economists from Goldman Sachs have predicted that Australia might escape a recession. However, there is a 25% chance that looms around recession possibilities in Australia over the next twelve months.
Some say Australia won’t go through a significant economic downturn, while others can’t keep up with similar optimism.
In this blog, we discuss 5 ways to fortify your business during a downturn and turbulent economic times.
Focus on Core Offerings
In times of uncertainty, it is essential to step back and analyse which types of service offerings have outperformed others and push them to the forefront. Instead of investing and continuing underperforming services, you should concentrate on your core business offerings and strategically position yourself. In the short-term, such steps might not be appealing, but they are necessary to keep the business afloat.
Prioritise the Client base
Even during the worst economic downturn, market gaps will exist. If you have successfully identified the structural pain points of your clients, you will have a clearer idea of What they want, When they want and How they want it. Prioritise their needs and make customisable business offerings whenever necessary. A greater loyalty towards the clients with small incentives helps in fostering a better relationship with them. Such steps are extremely important to retain clients and attract new ones during an economic slowdown.
Refine Marketing Strategies
Coming up with more robust marketing strategies during such time is more critical than ever. You should identify your unique selling proposition and communicate its competitive advantage. Finding creative methods and thinking outside the box can help you stay on top of your client’s mind.
- Don’t hold back in placing online targeted ads.
- Send personalised emails and messages to clients and keep in touch
- Maintain a seamless consistency on your social media presence and stay under your existing and prospective clients’ radar
- Develop an eye-catching referral model to promote word-of-mouth advertisement.
While such marketing activities can be an expensive exercise and stretch your business budget, during an economic downturn, such activities often turn out as successful investments
Build an agile workforce
Staffing cost is another area which might need your detailed attention during turbulent economic times. -.Reducing salary packages, training team members across multiple functions, hiring freezes for non-core activities are all measures you may need to take to survive turbulent economic times.
Reduce costs by deploying an outsourced team for especially non-core business processes including administration, accounting and related admin and compliance. Deploying outsourcing will free up the in-house team to focus on core revenue-generating tasks. Also consider what is the lesser of two evils – the company collapsing and all team members suffering job losses or sound risk mitigation by reducing staffing headcounts in non-core processes with an outsourced team to survive and thrive.
Outsource and Deploy Team SBA
Saving money is one of the prime focuses of every business during an economic downturn. With SBA’s competitive pricing and global resourcing pool, your company can get quality output with competitive pricing. Deploy team SBA to enhance productivity and profitability.