When the economy goes into a downward spiral, it's natural for businesses and their owners to feel worried. More often than not SMEs will turn on cost cutting strategies in order just so that they can keep afloat during these trying times - usually this works out well enough but there are consequences later down the line if done too long term!
Here are some simple strategies to make your SME survive during a recession:
Don’t overdo cost-cutting:
In times of slow economy, it is important to reduce costs but not at the expense of marketing. SME business owners can cut back on their monetary budget for advertising provided that they increase other efforts like personal appearances or social media promotion which do not require money so much as time and effort instead!
The Pareto principle states approximately 20% (or one-twentieth)of your success comes from 80%, meaning this may be all you need in order to achieve product popularity while also lowering overall expenditures during tough economic periods!
Generate more from existing customers
The key to success in business is getting new customers, but it's just as important that you keep existing ones. Studies show 20% of your customer base will give 80% or more from their orders- so if we want our revenue numbers up during economic recessions when sales may be slow for other reasons like lack of competition then being able to generate repeat buys becomes even more crucial!
There are some really easy ways entrepreneurs can entice these folks: incentives like loyalty awards; discounts on future purchases. The best part about all this? It costs practically nothing and keeping your customers happy is the best way to grow and maintain a healthy business. Offering loyal discounts will encourage them not only transacting with you, but also referring other people in need of their product or service!
Compete on quality and not price
The key to success for small businesses is not in competing with large corporations on price. Instead, they should focus on the quality and flexibility of their products/services while catering individual needs; this will lead them towards profitable business practices that can't be matched by competitors who must rely solely upon lower prices alone in order to remain competitive.
Don’t skimp on possibilities of growth
When you invest in a professional phone system, it ensures that your clients will never miss out on any opportunities. In addition to this assurance of client service excellence for years to come, there are many other benefits such as being able market or advertise products and services more easily with simple strategies like passing along business cards or mentioning one’s company when meeting new people.
A proper strategy will also make life easier during busy times as there's no chance whatsoever of missing any calls coming through to office lines due either shortage alone (unless something else goes wrong) but even then these systems have features which allow them to auto cue.