Why do some businesses thrive while others crash during economic downswings? There are uniquely dynamic and healthier approaches to the business cycle that separate successful enterprises from those that collapse.
Not all businesses suffer during a recession or economic downswing.
Often we see big corporations make it through unscathed and we’re left to wonder, what about the small businesses?
There are some industries that are “recession-proof” in nature.
However, Certain industries, as we saw with Covid lockdowns, tend to take the biggest hit such as restaurants, fashion retailers, and other consumer goods.
How can small businesses that aren’t recession-proof survive in an economic downturn to maintain stability and see the same results?
What really separates successful enterprises from those that collapse during a recession is they are organized around a uniquely dynamic and healthier approach to the business cycle.
These businesses plan for the future and keep contingencies in place to confront whatever challenges might arise.
The biggest thing is they focus on profits in an intelligent manner that helps them grow and prosper in any economic environment.
Marcus from the show ‘The Profit” says, “if you don’t know your numbers, you don’t know your business.”
If you don’t have an accurate and current understanding of your business finances, you are putting yourself at a disadvantage when unexpected crises occur.
How to Create a Company that will Survive a Recession
- Set, measure, and monitor inventory targets, sales goals, and revenues. But make net profit the main overriding focus.
- Weed out unprofitable accounts and lackluster ventures, services, and products. Reward top performers, and either improve those who are not contributing or let them go for the benefit of the overall team.
- Keep in close touch with customers and track their demographic patterns and consumer preferences. The better one knows his or her customers, the better one understands their own business.
- Develop strategies to attract new customers, retain existing customers, and sell more products or services to each and every customer. Grow the customer base, but also grow net profits in order to capture tangible bottom-line benefits.
- Advertise and market aggressively, but constantly refine and redefine the campaigns to strengthen the business and enhance the equity of the brand name to give it greater power, meaning, and recognition.
Are you confident that your business will survive and thrive through whatever the economy may bring, or would you like to make changes to boost your confidence?
If so, talk to a business coach to help you uncover the areas your business is most vulnerable. Visit our website at www.tbcactioncoach.com to get connected.
