How to Recession-Proof Your Small Business

How To Recession Proof Your Small Business

Is Canada headed for a recession? Hard to say. While there are some economists that say a recession is definitely in the near future, other experts suggest that Canada might just skirt an economic recession altogether.

Either way, one thing is clear: money is tight and businesses need to play it smart.

But while some business-owners translate that into downsizing to cut costs, there are actually some good reasons to start expanding your small business and reap the financial rewards. How can you make the most of the economy and turn rumors of a recession into an opportunity for your business?

• Go online – If you’re not already selling on the Internet, now’s the time to consider that avenue. In addition to the incredible potential for instantly increasing your customer base, you’ll also find that e-commerce is a relatively cheap way to do business. Websites also provide another level of customer service (they’re open even when you’re not) and serve as an affordable marketing tool that small businesses simply shouldn’t be without.

  If you do currently sell on the Net, consider expanding your services or products or try taking your wares to other online venues such as eBay. Use your website to stay in front of your customers through email marketing campaigns and encourage new sales by offering exclusive online discounts.

• Connect with your customers – Speaking of your customer base, now is definitely the time to stay in touch by reaching out. Contrary to popular belief, there’s still money out there, plenty of money in fact, its just not being spent quite so liberally. But by staying in front of your customers, you maintain an open line of communication that can be used to promote sales and discounts as well as new products and services. Plus, because you never “disappeared”, you’re more likely to see an increase in sales when the economy starts to improve than will your downsizing competitors.
• Re-evaluate your strategy – Take a look at your current marketing strategies – how do you solicit new customers? What kind of pricing structure do you currently have? It may do your bottom line some good to re-invent your business during an economic downturn. Offer discounts or free shipping. Hold one-day only sales or offer free gifts for new referrals. Your goal is simply to keep your business going during the struggling economy. Once things turn around again, you can always phase out some of these new programs.

The point is to stay busy. You want your business to have the appearance of being as active and “booming” as ever. Let your competitors be the ones to lay low and ride out the storm – you’ve got much more profitable ways of handling a slow economy.