How to Achieve Success in Business During a Recession

In a business cycle, a boom in economic activity will always be followed up by a recession. Any periods of high sales and profits will undoubtedly be succeeded by a period of low consumer spending and losses. In order to survive, a business must make some savvy decisions which will protect it from succumbing to the recession.

The type of business

Firstly, the type of business you are running will of course make the most impact on whether you survive a recession or not. Businesses such as money lenders and thrift stores will generally thrive and make a good turnover when times are hard.

This is due to the fact that consumers do not have much to spend and will therefore resort to borrowing money and spending on used items instead of brand new.

As jobs tend to be scarcer during a recession as well, the unemployed masses will look to used clothing stores to look good for their next interview.

Another area of business that will continue to flourish during a recession is the sale of essential items. Staples such as electronics, food and hygiene products will always be in demand regardless of the economic cycle.

Minimise staff

A business’s employees are its biggest overheads and cutting down on manpower could help the business cut down on a lot of costs. Investigate where you can make cuts and consider the effects it may have.

A wrong decision to reduce employees during peak times or seasons could backfire and result in disgruntled customers due to the lack of service. Identify those who are helping the business with sales and those who are taking a back bench approach.

Outsourcing is also a great way to cut down on costs of full time employees. This will enable you to pay for only the work you receive and can be a source of a lot less stress.

Cut down on overheads

Have a look through your expenses and make some cuts where possible. Actions such as turning off one extra light bulb could make a small difference in the long run. To see immediate results, devise a drastic energy saving plan and invest in items such as energy-saving bulbs and solar powered heaters.

Purchase equipment second hand where possible. Furniture and fittings need not be bought brand new. Renting and leasing are also great options.

Marketing

Marketing is one of the most important tools a business can possess, and when done correctly, can take your business to new heights.

You do not need to spend big in order to create a successful marketing campaign, there are dozens of inexpensive and even free ways you canÂ get your business name out to the public.

Social media is one of the most effective and low cost ways that you can promote your business. This can be something as simple as creating a page on a social networking site for your business.

There are also more classic approaches that would work just as well, simply ask for permission from your local coffee shop to put up a flyer in their window, or leave a few business cards in the counter.