Things for some people are bad right now. Some can’t see the light at the end of the tunnel. The worst part of this is that the government suspects that the economy is about to enter a double dip recession. If that happens, there will be a dramatic effect not only on banks and large corporations, but also on small businesses and profits.
No matter what, panicking about this is simply counterproductive. It’s best to be prepared in case another economic storm hits. That way, if a catastrophe strikes, you’ll be prepared. If nothing happens, you haven’t lost anything either.
Here are the top 10 ways to make sure your business is protected against a double-dip recession:
1) Increase the publicity of your business. Typically, advertising agencies become highly competitive. They have to reduce their costs for customers. Take advantage of this to increase your customers and profits. Sometimes you can double your advertising and the costs remain the same. So your earnings are the same, and having double exposure will increase the chances of your name getting out there.
2) Increase your cash flow by using your customer base. Use 2 for 1 deals, 50% off deals, limited deals, combo packs. Too many companies don’t realize that the money is in the customer list they already have. Go to your top 20 customers in your database and offer them something they can’t refuse.
3) Make sure you are in constant communication with your accountant. This will ensure that you do not go over your head. Know and manage their budgets and talk to them about their limits, their risks, their advantages and disadvantages.
4) Cut down on unnecessary items in your office. Do you really need that water cooler, fancy copier, dusty furniture, laptops, stationery? Always buy what you need and stick to your budget. Many companies that buy things they don’t need are simply wasting money. You’d be surprised how much these things add up each year. If you don’t need it, please don’t buy it. Cost savings is the goal here.
5) Create a better marketing plan. Simple things can save you money and also earn you a lot more. Sit down once a week and strategize about what you do well, what you don’t do so well, and how you can perform better. Make these meetings fun and energetic, and include all of your direct employees. You’ll be surprised at some of the ideas you get from these brainstorming sessions.
6) Study trends during past recessions and find out which areas of your business did well. Then focus more on boosting these areas when you advertise. When the economy declines, people have less money. Most smart companies add value and keep their prices the same. That way they get more market share, more customers and increase their profits, while their competitors suffer.
7) If you feel that customers are not engaging with your products, lower your prices. This may hurt a bit, but remember that you still have profit targets, bills to pay, and employees to take care of.
8) Network with others. Sometimes leverage is the most powerful vehicle in the business world. Today, many businesses are done by word of mouth. Find local meetups and networking conventions to meet and greet others. Some of the largest and most powerful business alliances have been formed from these events. Networking with other people in your area and businesses is a great way to take your business to the next level.
9) Test and measure your results. When things slow down, your results and your business will change. What you have to do is test and measure the results. Test to see what works and what doesn’t. So it’s just about doing more of what works and less of what doesn’t.
10) Never give up. There are too many business owners who have simply given up and given up. That kind of approach to business never wins. If the going gets tough, find a guru in your field and even pay them to help you improve your situation. They have the experience and have already experienced the ups and downs and even all kinds of economic climates as well. Their advice can sometimes be invaluable.