Small Business Recession Advice & Tips

Discussion in 'Growing and Managing a Business' started by bytrade001, Dec 6, 2011.

  1. bytrade001

    bytrade001
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    Reduce Wasteful Spending
    During a recession, it is vital for small businesses to reduce spending. The cost of inventory and raw materials should be analyzed to determine whether more cost-effective alternatives are available. Staff duties and responsibilities need to be looked at to identify whether job cuts are an option. Day-to-day costs such as leases, utilities and office expenses should be scrutinized. If a small business is going to survive a recession, all wasteful spending must be eliminated.

    Enhance Customer Service
    A small business must ensure that it is providing top-notch customer service, especially during a recession. Providing excellent customer service is the easiest way to keep current customers and clients. It is much more expensive to find new clients than it is to keep existing clients. Small businesses should evaluate each step in the customer service experience and ensure that customers receive the proper attention. Management should look at every aspect of a customer's contact with the company and make sure the customer's needs are met in a courteous, friendly and timely manner.

    Align Pricing to Current Market Conditions
    During a recession, small businesses might need to reduce their prices in order to keep current customers and to attract new ones. A small business must analyze the current market conditions to ensure that its prices are in line with competition. All companies search for value during a recession, and if a small business provides great products and services at fair prices, it will survive or even thrive during a recession.

    Use Cost-Effective Marketing
    A small company has many more outlets these days to market products or services. Consider using social media sites such as Facebook, MySpace and Twitter. These sites are free to use and give you the ability to reach new customers and keep in touch with existing customers. Send out promotional emails to entice your customers to make additional purchases. Most people are happy to receive an email from a company they know that includes a deal or a discount. Be sure to use email marketing wisely. Don't send too many emails to your customers. You can also provide a discount for a future purchase when a customer makes a purchase. There are a lot of other creative and cheap marketing possibilities available to small businesses.
     
  2. DaveB

    DaveB
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    Great post as usual ByTrade! I think another good point of advice to help shield small businesses from a recession and that is to constantly look to branch out your business services and products. A good business should be constantly looking for new partnership or money making outlet. Sometimes when you get too content doing the same thing over and over then you improve. Of course do what you do best the most but always set a apart a small amount of resources to try new business avenues out. You never know where a new road may lead you but it is worth it to take tiny risks every now and then. Even if you just learn something valuable for later you can still reap huge rewards by not staying complacent.
     
  3. JPM

    JPM
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    I couldn't agree more. Targeted and relevant emails are extremely useful, but constant emails that don't reflect the users habits or interests will just be ignored and viewed as spam.
     
  4. Missnancyalex

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    Small business does not have enough resource to cut short their price and they do not have enough money to bear loss for some time. So recession affects SMB more than a big business or brand.
     
  5. Navida

    Navida
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    If you are doing quality work then I believe on it that recession does not effect so much on your business either it is small or large. Keep in mind the customer`s need and want that is very important to run your business successfully.
     
  6. firstchoicecar

    firstchoicecar
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    I agree with this.If you are trying to start a business, it is ok if you are spend on operations and something will back in return,But is you spend waste some money which has nothing to do with your operations, It will really lead you ti Bankruptcy.
     
  7. marie12

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    many thanks.. i start a new business hope this will work for me..
     

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