Times of economic uncertainty can be highly stressful for business owners. When the national economy is uncertain, the anxieties around it will translate to your daily business practices. However, there are ways to work and protect your business from times of economic hardship.
Tips to help your business through the recession
1. Stay Resilient
When considering how to adapt your business to operate well during tough economic times it’s important to remain resilient. Small business owners have been praised for their optimism in regard to the economic landscape. This resilience is key to getting through tough times, keeping an eye on your finances, and being flexible with your business models and products and services that can take your business through a rough economic downturn.
2. Focus on your customer
Another strategy to use is to keep the focus on your customers, Repeat customers are essential to business success and so is a loyal customer base. Up your customer service, listen to your customers and try to go above and beyond to meet their needs.
3. Don’t be afraid to ask for help
Finally, don’t be afraid to seek help or advice. There are innumerable resources available to small business owners, from mentorship opportunities to government-funded help. Your local council may be able to provide business support, or if you live in London you can engage with your local London Business Hub.
Tips to helping your business survive during rising inflation.
The UK is facing historically high inflation rates, which can affect the costs of your business dramatically. Particularly if you sell goods, you may find that your raw material costs more. If your business provides a service you may be seeing an increase in overhead costs, or travel costs.
1. Cut unnecessary expenses
Have a look at your expenditure and identify areas to cut. For example, cheaper packaging materials, using digital software to automate specific processes, or lowering rent costs by working from home and using a Day Office occasionally over a co-working membership or office. These smaller cuts will save you money in the long run.
If you already use digital software, you might want to audit them, and see how necessary they are to your business. For example, you may not need to pay for a social scheduling tool and can use in-app scheduling or a free programme.
It is important to avoid broad cuts for the sake of saving costs. Lying off efficient staff, cutting essential programming and switching to cheap but potentially unreliable or low-quality materials could be harmful to your business.
2. Stock up on supplies and materials
Inflation means the prices of goods will continue to rise. Therefore, stocking up on materials allows you to keep your costs low in the long term. By buying wholesale, you can keep the price of your product consistent as you’ve protected yourself from rising costs.
If you don’t have the capital to bulk-buy, you may want to consider networking with businesses that sell similar products. They may be open to pooling resources together to stock up on raw materials. After all, if your business is feeling the drag from inflation, others may be too.
3. Focus on growing your customer base
In times of inflation, consumers may be looking for cheaper alternatives or a business that has better customer service or special additions. You may want to start a loyalty program, offer extended warranties or a new customer offer to entice consumers to choose your business. Then focus on your providing excellent customer service to retain customers.
If you have a job such as consulting, additional services you may want to offer to retain customers and attract new ones is using content marketing tactics like creating e-books, whitepapers or blogs. It allows you to get your name out there and shows of your prowess and knowledge of the industry.
Hard times drive innovation
Navigating the tumultuous waters of inflation and recession requires a combination of adaptability, foresight, and strategic decision-making. Remember, challenging times present opportunities for innovation and growth. Stay proactive, remain resilient, and believe in the power of your entrepreneurial spirit. With careful planning and a steadfast commitment to success, your small business can not only survive but thrive in the face of inflation and recession.
We’re here to help, follow our blog for help and advice about all things business, from information on grants to post-formation tips.