Business America is slowly re-opening. Given the dismal economic numbers we have seen, the market reality mirrors that of the last recession.
There was a survey done to businesses that survived the 2008 recession by Trends, and the below are 5 key takeaways from business owners on how to cope with the economic fallout. We might like to borrow them for the fallout from the recent COVID-19 pandemic.
1. Be(come) Lean and Mean.
The most common strategy adopted by business owners who survived the Great Recession was to cut unnecessary costs. While keeping a team intact where possible is a priority, many business owners reduced headcount, trimmed the number of hours worked or gave essential staff furlough days in lieu of layoffs.
2. Offer Freebies or Discounts.
During the recession offering free or discounting products or services is a way of growing a customer base, while keeping you focused on and practice what you do best. Having a larger customer pool would lead to increased sales as the economy recovers.
3. Make Strategic Acquisitions.
A recession may be a good time to find strategic acquisition targets at a reasonable valuation. Especially those owners that had been contemplating retirement, but the economy was too good to walk away from. Also, when your competition closes, their clients are left in the lurch, and who is better at serving them than someone in a stronger position to stay open, i.e. you?
4. Create Strategic Partnerships (or Strengthen Your Network).
This requires a deeper look at other business owners whose services or product complement your own. For example, a pet supplies store can partner with dog trainers, veterinarians, and behaviorists to build influence and promote its products.
5. Avoid Debt.
Debt is only good when the interest rate is 0% and forever. This goes back to point #1, what can you do to stay lean and mean? Can you use an automation tool to replace some repetitive tasks? Can you outsource some work to remote workers that have lower labour costs?