5 Tips on Keeping Your Small Business Running in a Tough Economy
Running a small business can be exciting, fun and very profitable if it’s done right. Even in a tough economy, your small business can remain viable, but you can’t leave anything up to chance. Here are five tips to help you succeed when the going gets tough.
1. Be the Best at What You Do
Whether you sell homemade jams, cater weddings or build websites, your business has to be the best in its niche. You can stand out from your competitors by delivering a high-quality product or service every time. Quality will speak for itself and provide you with repeat customers and referrals.
2. Spend Time on Strategic Planning
When business is slow, it can be difficult to look past your day-to-day activities because you’re worrying about generating revenues. But now is the best time to think about strategic planning and marketing. How can your business succeed next week, next month, next year and beyond?
3. Focus on Providing Value Instead of Lowering Prices
When times are tough, customers may shop around for the lowest price. It’s easy to see why small businesses feel the need to reduce their prices to compete, but this is a downward spiral that will only end in bankruptcy. To keep your company solvent, we recommend you avoid the temptation to lower prices and provide additional value to your customers instead.
4. Find Creative Ways to Increase Revenues from Your Customers
It’s easier to sell to existing customers than to find new ones. Your customers already trust your business to provide a great product or service. That’s why it’s so important to reward loyal customers. And when they buy from you, you can use that opportunity to find out what else you can do for them and increase your revenues at the same time.
5. Don’t Stop Spending on Essentials
You may be tempted to reduce your expenses in order to still make a profit with reduced revenues. And for some expenses, that may be a good idea. But you should never stop spending on the essentials. And essential expenses include marketing and advertising expenses, because that’s what brings in new business.
There’s a fine line between trying to save money to remain afloat and going out of business because you stopped investing in the company. Slashing prices and cutting expenses can often backfire. Fortunately, you can use our tips to keep your business profitable even when times are tough for your competition.