Can a Business Grow During a Recession?
The pandemic hit small businesses especially hard. And just as we were starting to come out on the other side, fears of a recession began taking hold. Now it’s all but certain we’re going to be seeing a full-blown recession in 2023 and beyond. Small business owners may think things can’t get any worse–but perhaps they can actually improve? Optimists, take note: There might just be a silver lining here after all, and we’ve got the strategies to prove it.
Engaging the Base
Your most loyal customers–you know, the ones who know your staff by name and spread the word about your business around town–are always going to be the key to maintaining steady profits. If you stop engaging them, you’re likely to stop seeing real growth. And why is that? Not only is your base the tried-and-true group of people you can depend on to be repeat customers, they’re also the ones spreading the word about your business to potential new customers. In other words, those most loyal to your company are also one of your most cost-effective marketing strategies.
Relationship Building
Building and maintaining relationships in business is key to long-term growth. Not only do you want to keep those loyal customers coming back by engaging them, but you also want to focus on the relationships you have with your business partners and suppliers. For example, providing suppliers with regular feedback about your business needs and expectations is paramount to keeping the lines of communication open and fostering trust. You can also consider offering your repeat customers and suppliers exclusive discounts and offers. And don’t forget the importance of thanking those who continue to do business with you: it may seem like a small gesture, but a simple “we appreciate your business” can really go a long way in keeping your relationships solid.
Digital Adoption
From social media to email marketing, we’re continually writing about the benefits of digital adoption over at the Financial Pantry. To keep your business growing even in the most uncertain times, digital engagement tactics are key. They help to increase awareness of your business, reach new clients, and promote upcoming launches, sales, and events. You likely already have a website; during times of economic slowdown, this is a much less expensive avenue for advertising. Other examples of digital adoption include SEO , blog articles, and social media. Using methods such as this to promote your business can increase your customer reach and save you money.
Cost Cutting
This might seem like a daunting idea, but cost-cutting measures are important for any small business–especially one operating during a recession. You’ll need to take a good look at your current expenses and see where you’ll be able to trim costs without sacrificing your company’s core strategy. Whether you reduce your business hours, revisit and renegotiate supplier contracts, or consider canceling unused services, there are all types of ways to reduce excess spending to keep your business running. Automation is also an ideal way to cut costs: what does your business do now that could easily be accomplished with a new form of software, for instance? Once you open your books and take a good look at your current expenses, cutting costs may seem a lot easier than you originally thought.
Ready to grow? A small business loan from ARF Financial can help you reach your fullest potential, allowing you to invest in new technology or develop a fresh marketing strategy. Whether it’s a small business line of credit or Flex Pay loan, we’re able to get you approved and funded ASAP–with no credit checks and minimal paperwork. And your personal loan consultant is with you every step of the way to make sure you’ve got everything you need to grow… and then grow some more. Check us out today!
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