How to Build Recession-Proof Businesses: 8 Secrets Backed By Research
COVID-19 hit us suddenly and caused global lockdowns. Because of the recession caused by the COVID-19 pandemic, tens of millions of people are out of work. Many people are struggling to pay rent, their mortgage, and even put food on the table.
While the effects are disastrous, there is hope. Many people are taking this time to start their own business. But how can a new business thrive during a pandemic? The secret is in the planning. Recession-proof businesses, such as commercial cleaning companies, plan their business well to thrive even during the worst pandemics.
Here are 8 ways to ensure your new business stays secure and successful during an economic disaster.
1. Invest in Technology
We live in the age of technology. From automation to artifical intelligence, technology assists with many business functions. This includes marketing, project management, even maintaining your finances.
Technology creates a more streamlined business. You won’t need to devote as much time to menial tasks. Therefore, investing in technology helps you save money and you’ll achieve your ROI.
But don’t invest in just any technology. Make sure the tech you use is adaptable.
What are great examples? Take video conferencing as a perfect example. Since in-person meetings and events are out of the question, more businesses are using video conferencing to talk to their staff members, stakeholders, and other individuals.
2. Think About Your Team
As your business grows, you’ll need team members. They will hone their skills to create a successful machine. But do you think about the big picture when hiring?
Efficiency is key when creating a recession-proof business. Pay attention to your staff structure and focus on team responsibilities. Find ways to cut back on time worked, costs, and more.
Think of whose role is an essential service. You should also know when to outsource or contract a freelancer versus hiring a full-time staff member.
3. Always Stay in Action
Pandemic or no pandemic, every business has its slow season. But during a pandemic, that slow season can last a long time. As a small business owner, you should create a plan to always stay in action, no matter how much business you’re getting.
Make a list of tasks you can do until business picks up. This can be a retargeting marketing strategy, researching and developing a new product, and simply finding ways to attract new customers.
Don’t wait to create this plan when a recession arises. Work on this plan in the beginning so you’re always prepared during the slow season.
4. Prioritize Business Development
Not only should you always stay in action but you should always find ways to develop and improve your business. If you don’t, you’re setting yourself up for failure.
How do you continue improving your business? Brainstorm with your team to create new business strategies. Keep up with current trends in your niche. Always focus heavily on sales; search for new sales and lock in appointments and upgrade your sales funnel. If you struggle to gain sales, give your marketing strategy a makeover.
5. Focus on Your Marketing
Proper marketing ensures you’re always in the public eye, even during a pandemic. With the internet, there are more ways to market your business than ever before.
Unfortunately, a recession means your business has to make budget cuts. Marketing is one of the first areas that usually gets cut.
This is a common mistake; if anything, you should invest as much as you can in marketing. Great marketing will help bring in new business.
What if you still don’t have a lot of money to devote to marketing? Look at results from past campaigns. Identify the least successful campaigns. Either cut that budget out entirely or use the money saved from that campaign toward your more successful campaigns.
6. Don’t Forget About Retargeting Customers
While you’ll want to advertise to new customers, you shouldn’t forget about your relationships with current customers. Continuing with the last point, you should also focus on investing in strategies that nurture existing customers.
Email marketing is a common example. You can send personalized emails, using customer order history to send targeted promotional emails. Other email examples, such as abandoned cart and “we missed you,” are also effective.
Advertising technology is also improving; your previous customers will see your ads, ensuring your brand is always at the forefront.
7. Keep up With the Times
The world is unpredictable, as we have all witnessed with the COVID-19 pandemic. Because of this, your business should always keep up with the times. While this pertains to industry trends, it can also include worldly trends.
Let’s take a common COVID-19 trend as an example — face masks. The CDC recommends we wear face masks to slow the spread of the virus. However, there was a point when face masks were in low supply.
Because of this new demand, clothing companies took it upon themselves to create face masks. Not only that but these brands created fashionable masks that people will want to wear.
8. Have a Financial Planner
Last but certainly not least, always have a financial planner (or a financial planning strategy). Keeping accurate financial records and planning for the future is the ultimate way to ensure you’ll prosper if another economic disaster strikes.
A financial planner will help you save, will manage your cash flow, and will help you monitor your expenses. If you hire a financial planner, hire one in the very beginning. As an alternative, you can also try effective budgeting and financial management yourself.
Cleaning Companies Are Also Recession-Proof Businesses
While it seems impossible, recession-proof businesses exist. These tips will help you prepare for a rainy day (or a global virus outbreak), but you can also invest in a business that will survive a recession.
Cleaning companies are a great example. COVID-19 is teaching us that hygiene, cleanliness, and sanitation are more important than we think.
Starting a commercial cleaning company is also easier than you think! Click here to learn more.
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