It has already been a solid decade since any of us saw or felt the worst effects of the last major economic recession. In historical terms, Another one may be just around the corner. No one knows exactly when or how it will start, though. That’s why it’s important to recession-proof your business now, while you still have both time and wiggle room. After a surprise stock market rout, there may be no more space to maneuver your marketing plans!
Manage Money Expectations
During a recession, money will dry up. It will be much harder to secure any kind of loan from a bank or other investors. So don’t expect to get any easy help in a pinch. You should try to lock in some recession-proof financing terms with your favorite creditors ahead of time. After a recession starts, it will be almost impossible to get a new deal that’s really favorable to you.
Get a good line of credit now, use it wisely while you build up your credit rating, and when times are tough, the banks will know that they can trust you.
Build Recession-Proof Networks
It’s hard to recession-proof your business after a recession starts because everyone you work with, from suppliers to customers, will be dealing with the same tight conditions. People you depend on now may not be there for you in those days, so plan for that now.
Keep reaching out to more and more people who can help you, and who you can help. The bigger your network, the more opportunities you have to get a brilliant new idea and pivot to save your business. This also applies to learning about backup suppliers and distributors. You need to have people you can call if another business you rely on for yours to function goes belly-up.
Grow a Recession-Proof Customer Base
Customers come and go, so you always, always, always have to find more! When a recession hits, you will lose some, and your sales will probably drop. All of your customers and clients are going to be working in the same environment you are, and they, too, will have no cash to spare. The fewer customers you have now, the harder the impact then. If most of your revenue comes from just a few big accounts, losing one can cripple you.
You’ve got to imagine and analyze the effects of losing both of your two biggest customers. Will that effectively sink your ship, or would it only be a dent you can hammer out, since you have so many others? Plan accordingly, and go after every lead you get!
Never Stop Marketing
Likewise, you should always keep building your brand. Even during a serious downturn, you need to market your solutions so people know that the value you offer is worth spending on, even when it’s hard. Remember that you can get a huge ROI by using low-cost marketing tools like blogs and social media. Enlist your customers to help share and promote your content!
This is also where REV CMO comes in. We provide the top-notch marketing services you need without the expense of hiring a full-time Chief Marketing Officer. This allows you to get all of the dedicated branding, web design, advertising, and digital media content production services you need to stand out, without breaking the bank. Contact us to get started! We tailor our plans to the individual needs of your business, so you can be sure to expect optimal results.
One way or another, get ready for what’s next. It might be exciting, or it may be dangerous. But it will definitely be an opportunity for you to succeed!