No doubts, recession and crisis such as the pandemic facing the entire world now can be bad for business, especially small businesses. But the truth is, some businesses still thrive and succeed in the midst of recession. Yours can be among the few businesses that will thrive and make much more profit regardless of crisis. Keep reading to learn what you should do.
Tip #1: Consider a Less Expensive Alternative
During recession, there’s less money in circulation and the purchasing power of many people drops drastically. So, a smart business owner should consider less pricey or cheaper alternative to what is being offered previously. You should research your competitors and find out what they are offering similar product or service for. Subsequently, you can lower your own price to beat the competition. You should focus on high rate of turnover instead of high profitability.
The large customer base you would build by lowering your price will not just sustain your business during the crisis. It will also help you to expand your business after the crisis. This is because many of those customers are likely to stick with you and even bring in more customers for you. This is because they consider it a favor returned to your un-selfish pricing when things were tough for them.
Tip #2: Provide Better Solutions than Your Competitors
Quality research is necessary to succeed in business, whether it is during recession or not. How are your competitors offering their services at the moment? What can you do to improve on what they are doing currently? When you find answers to these questions, you have discovered the secret to diverting your competitors’ customers to your own business, especially if you provide better service at a better price.
If customers or clients can solve their problems more effectively with your own service, they won’t think twice to use your service. In fact, even in recession, people are willing to pay more as long as they generate value for their money. For instance, in the midst of recession, a service company decided to help small businesses manage their finances better by offering outsourced accounting service. Many local businesses did not think twice to opt for the service since it helped them save much more than hiring accountants in-house.
Tip #3: Make Purchasing More Convenient
When crisis such as the covid-19 pandemic hits, people seek for any possible way to relieve their stress. One good example is to have their purchases delivered at their doorsteps. So, starting a delivery service or adding it to your present business can help your business survive and thrive even in the midst of recession or crisis.
Do not delay to put these tips into practice, they will produce amazing result.
Daven Michaels is a New York Times Best Selling Author and CEO of premiere global outsourcing company, 123Employee. The company employs hundreds of young bright individuals on three continents. His International event, Beyond Marketing Live! Inspires entrepreneurs to build & grow their business with revolutionary new theories and systems allowing them to design the business and personal lifestyle of their dreams.