Find out why tough times in business happen and discover 15 handy business strategies you can follow during a recession to survive any tough time in business.
Why do businesses go through tough times during a recession?
Tough times are a part of running a business.
You may have experienced an unbroken streak of success right from when you established your business.
But tough periods can come up at any time, especially when you least expect it.
This doesn’t sound very encouraging, but it is simply a fact.
Every business is either going to encounter hard times at one point in its existence.
These periods give you ‘backbone’ as an online entrepreneur.
One sure thing about tough times though.
When you get through that phase, you are twice as strong and twice as wise as you were before it.
This is what is known as experience.
Something you won’t get reading a book about online entrepreneurship or business in general.
Difficulties in business happen for a variety of reasons.
Your business could be going through a tough time due to something you aren’t doing or you’re doing wrong.
Money, clients, lack of a team, low publicity; you never know until you sit down to figure out the problem.
The reason your business is going through tough times could be anything at all.
But the good news is, you’re reading the right article.
There are reasons why you get tough times in business.
But there’s a general business strategy during a recession to pass through such time without running into debt or burning out.
Table of Contents:
Why do thought times may come for your business?
15 Business Strategies During A Recession To Survive Tough Times in Business:
- Start Doing Efficient Business Development
- Find A Business Mentor
- Work With Data Not With Assumptions
- Maybe It’s Time To Iterate Your Business Model
- Be Laser Focused On Growth
- It’s Time To Rebrand
- Stop Making Your Past Mistakes
- Adjust Your Pricing
- Narrow It Down To One Niche
- Watch Economy’s Growth
- Get Control Over Your Finances
- Try A New Direction
- Work On Client Retention
- Partner With Other Businesses
- Learn A New Skill
#1 Start Doing Efficient Business Development
What’s your first move when your business hits rock bottom?
For most people, it is to put everything on hold until they figure it out.
This is purely instinctive.
However, if your business is going to pull through, then keep pushing.
A recession is the best time for upping the ante in business development.
This should be the right kind of action and the most effective.
Give your best shot at getting a new project or negotiating with that big client.
It would do your business good and boost your confidence.
#2 Get A Business Mentor
The truth is that there is nothing particularly special about what you’re doing.
This means that someone out there is probably getting the same idea.
Or they have gotten it long before you and are currently thriving.
Having a mentor doesn’t make you an inefficient entrepreneur.
Instead, you will get invaluable advice, tips, and encouragement.
Knowing that someone else is successful in the same line of business is positively challenging.
#3 Work With Data Not With Assumptions
When a business keeps spiraling downwards, hitting rock bottom seems inevitable.
This is the point where most entrepreneurs lose their morale for good.
But to keep your business afloat during tough times.
It’s crucial to acquire as much information as you can about the business’ predicament.
Just make sure you stay with the facts only.
Any other prospect will only send you into anxiety.
This will prevent you from making excellent choices.
Keep on running the business as though nothing is happening.
Give it your best, though.
Most times, half of the things we are anxious about don’t eventually happen.
#4 Maybe It’s Time To Iterate Your Business Model
Ironically, tough times are blessings in disguises for the tenacious business owner.
This is a period to settle down from all operations.
Then, have a good think about what could be going wrong.
If everything is foolproof, then perhaps there is something you’re not doing.
Many businesses that have gone under have done so because the owners kept doing the same thing over and over again, expecting to get a different result.
This may be the time to break norms.
Think out of the box, and try something entirely new.
Change is refreshing.
#5 Be Laser Focused On Growth
Some online entrepreneurs throw in the towel and wait for the ax to fall.
Do not do this if you want your business to pull through a tough time.
See your downtime as an opportunity for growth or possible expansion.
Imminent disaster and disaster itself doesn’t necessarily mean the end.
While you are keeping the business running during a tough time, avoid negativity as much as you can.
Certain people are not good for your business or your psyche at times like this.
During a recession, you don’t need the bearers of everything negative.
They will only add to your stress levels.
Stay away from bad energy.
Mingle more with proactive, optimistic entrepreneurs instead.
This way, you will grow out that tough phase and keep growing.
#6 It’s Time To Rebrand
Maybe changing your brand logo is what your business needs.
Perhaps it’s not.
But if you’re determined to have your business survive.
It’s crucial to invest in rebranding.
Especially in hard times.
While you may have loyal customers, attracting new ones may be problematic.
Not because your brand is not offering value.
It’s also not because you’re not a skilled entrepreneur.
It could simply be that something is wrong with the image your brand projects.
Empower your team, upgrade your website, network, invest in recent tech, put up a new logo design – rebrand!
Your audience will notice the change and be interested in being part of it.
#7 Stop Making Your Past Mistakes
This is a crucial part of weathering the storm.
Know what ails your business and do the opposite as you work towards development.
The saying “experience is the best teacher” is not popular for nothing.
This is true, especially of business.
Past losses and failures are not for you to repeat.
They are for you to learn from and avoid the same pitfalls.
It’s good if you collate all your past failures and work out a strategy to combat the same issue when they come up.
#8 Adjust Your Pricing
Sometimes, a customer-friendly price is just what you need to whip up more patronage.
Keeping your loyal customers happy will assure you of their future purchases.
It will also earn you some new ones.
Many businesses run successfully on word-of-mouth referrals from one client to another.
Not because they have a secret marketing scheme somewhere.
But because they make their customers happy.
If you’ve been giving your customers value for a high fee.
Try to create a discount package to help you wade through tough times in business.
Your customers are your most valuable asset.
Always build and maintain good relations.
#9 Narrow It Down To One Niche
You may have had the nudge to do this a year or two ago.
This is the right time to.
A common business strategy during a recession will be for you to make as many hard decisions as possible.
Outline what is and what isn’t about your business.
If you are not expanding, narrow your niche explicitly.
This will help you make the necessary changes and stay focused on them.
#10 Watch The Economy’s Growth
As an entrepreneur, always take note that change is constant and times change.
Your business should and must be able to adapt to changes in the economy to stay afloat.
Something could be happening in the market that’s completely unlike your brand.
It could be something foreign to your methods as well.
But if it’s going to work, then why not?
Don’t keep doing the usual.
Modify your business model to accommodate new things and go with the flow.
#11 Get Control Over Your Finances
Doing nothing because you can see the handwriting on the wall is not good entrepreneurial instincts.
Sometimes, the gravity of the situation is overwhelming.
But this is the time to hit the books.
Hire a CPA and a bookkeeper to help you sort out your finances.
They will keep you in the loop on its current state or problems.
If you can’t afford it, research extensively on how to Do IT Yourself.
Being able to run an accurate profit and loss statement is good for you.
You know which part of your business is making profits or loss.
This way, you know what needs a boost and what needs to be shelved.
It may be little progress, but it’s still progressing, so keep it up.
#12 Try A New Direction
If you are not going to hire a professional for this line of strategy, you can solicit ideas from family, friends, associates, or your mentor.
This will give you a fresh perspective on your business and what can be improved.
You may also want to check out the competition.
What special thing are they doing?
What extra services are they offer that you aren’t?
Knowing the key strengths and weaknesses of your rivals will help as you strategize and rebrand.
Just as there are several ways to skin a cat, there are also several ways to run a business.
#13 Work On Client Retention
While you’re working on surviving tough times in business, ensure that you aren’t losing any client.
Things may be hard, thus slowing your operations.
However, try as much as possible to retain your clients.
As an entrepreneur, never let the current situation affect your customer service.
You never know which client, whether old or new, will bring in the kind of business that will make a difference.
#14 Partner With Other Businesses
In business, no man is an island.
You do not just need a great team; you need to network consistently.
You may have the entire vision and business plan.
But you are not the most important asset in your business.
You also can’t do everything on your own.
Having other businesses to partner with opens yours to opportunities.
Besides, the positive energy will help you keep pushing.
Share with a mentor or people who are doing well in the same line of business.
They may not be able to solve your problem on the spot.
But you will get good possible solutions and advice.
#15 Learn A New Skill
Your business may be established, and you may have acquired an impressive level of experience.
But it is never too late or too much to learn a skill.
As an entrepreneur, investment is all-round.
Your business and your team are not the only areas that require financing.
Invest in yourself as well.
This can be done through books, online training, coaching, seminars, and conferences.
Do whatever it takes to ensure that you’re better than you were last year.
Remember that change is constant.
Whether your business gets through a tough time or it goes bust is a factor of what you choose to do during those times.
Enterprising has certain principles that guide it.
But one primary thing about enterprising is that it’s almost unpredictable.
One year you’re booming and making shopping sales.
The next year you’re on the brink of declaring bankruptcy.
This cannot be entirely avoided.
But the situation itself can be managed.
These fifteen tips contain simple steps to take to survive tough times in business.
It’s not out of line to seek professional services as well.
This way, you have all the information and expert advice on possible outcomes and solutions.
In business, it is never over until you say it is.