How to Keep Your Small Business Growing During an Economic Crisis
How to Keep Your Small Business Growing During an Economic Crisis
Historically, every ten or so years the world goes through some form of an economic crisis (a recession, a market correction, etc.), and while this has an enormous impact on large businesses as we see them file for bankruptcy protection or do massive layoffs, oftentimes survival for a small business is at stake. What can you do as a small business owner to be prepared and not just survive, but grow?
Here are a few things you can do now to still grow your small business or start-up while the world tends to slow down.
Always Keep Communication Open. It’s essential that even if your business “closes up shop” for the time being, that you keep your customers notified about what’s going on. Not only is it important to keep communicating in order to continue building relationships with your audience but it’s also a great way to remain in the minds of your social media followers and customers - so that when things start to normalize, you’re who they think of first.
Stay Informed About Government Emergency Relief and Bank Payment Deferrals. We’re privileged to live in a country that does take care of its citizens in times of emergency. As sales decrease, you may be feeling the impact financially and worry about paying rent and expenses. Many major banks have reported their willingness to work with businesses to defer loan payments and even increase credit where needed. Humans are generally compassionate - if you reach out to your bank, you may find them more eager to help than you think. Some of the many initiatives that the US government has used during the crisis include low-interest bank loans backed from the SBA, tax deferments, and payroll tax cuts and payments.
Get Creative in How You Serve Your Customers. During a crisis is the optimal time to think about other ways you can provide your product or service to the public. Instead of refunding tickets for an event your hosting, promise to fulfill them at a later date. Try to upsell gift certificates for when things get back to normal - a free dessert could be an incentive if you own a restaurant. Can’t have in-person customers at your storefront? Start promoting online sales and free local delivery! Even if you’re selling board games, these are items people would love to have to kill the time. Offering a service? How can it apply to people over the phone, through video chat, etc? Also, think deeply about how to retarget previous customers, it’s always easier to sell to someone who has previously bought from you than to find a new customer, this is a great time to re-evaluate your current practices.
Only Make Purchases That Are Essential. Now’s not the time to replace your office chairs or invest in an all-in-one printer. Even if your cash flow is staying steady, the future is rocky and you could find yourself in a pinch within weeks or even days. If you make the necessary cuts now, you’ll be happy in the long run when you find your small business continues to grow for as long as possible.
Interested in learning more about what you can do to keep your business growing during an economic crisis or to find out more information about how NMBL Strategies can help, reach out to info@nmblstrategies.com for a conversation today.
