It has almost become a cliché at this point to talk about “these challenging times.” While the issues around lockdown and COVID-19 have been difficult for companies to work around, this has now been compounded with the UK economy heading toward recession. However, while this is a challenge there are ways to address the issues facing companies and here are just a few tips on how to get your business through recession in 2020.
Work on cash flow
One way to protect your company is to improve your cash flow. There are a couple of ways you can achieve this. One method is to focus on increasing sales or improving how you bill your clients. Another way is by reducing expenses (for example encouraging carpooling to reduce dependence on company cars, thus cutting on fuel bills.)
Inventory management
Storage and shipping costs are potentially very expensive. You should consider other avenues such as looking at alternative couriers or dropshipping to cut costs.
Focus on what you do best
It can be tempting during difficult times to offer more products and services. What often works better is by focusing on a core product or service that people will want and make it as effective as possible.
Get competitive
Ideally you should be able to retain your core customer base. It is also worth looking at ways that you can entice customers from your competitors. One way is by researching rival companies and seeking feedback from their clientele, allowing you to adjust your products, services and marketing accordingly.
Retain customers
While increasing a customer base is important, this should not be at the expensive of your core clients. Don’t be afraid to ask them what they think of your service and how you can improve it for them. Extra discounts and additional loyalty incentives can also encourage customers to stick with you.
Marketing is important
During a recession, there is an element of fear and that can lead to cuts. One area you should not cut back on is marketing. If anything, this is the time to reach out to people who might be reassessing who they do business with, whether in terms of costs or for ethical reasons (such as wanting to choose small traders over multinational chains.)
Effective use of marketing gives you the chance to spread the word. While it may be an investment in the short term, the right approach should yield big rewards in the long term.
Check your credit rating
Just as individuals should check their credit rating to see what loans and other funding is available, you can do the same for your business. Checking your credit rating will also give you the chance to address any mistakes that could be unfairly affect your rating in a negative way.
We can help
At Digi Toolbox Ltd, we have the tools that can allow you to get more from your technology and give you the support you need to improve your business’ productivity, even during difficult times. Please contact us today for more information on our client packages.