Brace yourself. America’s economic turbulence is far from over. Some experts anticipate inflation won’t fully end until 2024 at the earliest, which can put the squeeze on small business owners.
At Simpay, we have our finger on the pulse of today’s business community. We’ll teach you how to increase sales during a recession and provide additional tips to stay profitable during a financial crisis.
1. Monitor Your Cash Flow
Your company’s cash flow is the lifeblood of your business. Cash flow is considered to be the money flowing through your organization at any moment. Unfortunately, too many small business owners confuse cash flow with revenue. But cash flow refers specifically to the amount of money you have on hand at any given time.
Keeping tabs on your cash flow ensures you have the working capital to pay your bills, keep up with payroll, and maintain your financial obligations. Conversely, if you lose track of your money, you risk defaulting on those same obligations.
Recession-proofing your business starts with a plan to monitor your cash flow. Need a hand? Contact Simpay today for total business solutions, and learn how we can put you in the driver’s seat of your company’s finances.
2. Focus on Your Marketing
To truly understand how to increase sales during a recession, you’ll need to harness the power of persuasive marketing.
The Wall Street Journal reports a surprising fact — over the last decade, consumer spending has buoyed the revenue of startups and small businesses. But now, the “nice-to-have” economy is shrinking as consumers tighten their budgets and focus on necessities.
For your business to thrive, you’ll need to market your products or services as “must-haves.” What problem does your business uniquely solve? Why can’t your customers live without it? If you can develop a marketing strategy around these two questions, you’ll have a better chance of survival during a recession.
3. Find Your Niche
Don’t just be a coffee shop. Coffee shops are easy to find on any street corner, and each business doesn’t always contribute anything unique to the local community. The same is true for other companies in different industries as well.
Instead, focus on what makes your business truly special. For example, position yourself as a “kid-friendly” restaurant or a leading landscaping company committed to using eco-friendly products. Finding your niche will give customers an added reason to support you even when the economy is unstable.
4. Adjust Your Prices
With inflation on the rise, you’ll probably need to adjust your prices at some point. If you can offer your products at one low price, you’ll stand out from the competition and maintain your sales volume.
But some customers are reluctant to buy an item if they believe it is lower in price or quality. Some data indicates consumers associate low prices with inferior merchandise. As a result, some businesses may be able to retain higher prices by positioning themselves as a high-quality alternative to their bargain-bin counterparts.
5. Commit to Customer Service
Even in the age of e-commerce and self-checkouts, customers expect strong customer service and personalized shopping experiences.
Training your employees to focus on customers’ needs will nurture stronger relationships, translating into stronger customer loyalty. As a result, you’ll see your business thrive even when the economy remains unstable.
Start Today
These tips can help your business stay resilient even if the American economy seems uncertain. By starting today, you can build a better business for tomorrow
