Almost all indications point to an impending economic downturn. But that doesn’t mean that even in difficult circumstances, business growth is impossible.
Numerous ominous economic signs are starting to fall into place. During the first quarter of 2022, the US GDP decreased. Since the onset of the epidemic in spring 2020, the stock market has been in a downward spiral for weeks, and it recently entered bear market territory for the first time. In a determined effort to battle the historically high inflation rates devastating the nation, the federal reserve is aggressively boosting interest rates.
All indications point to an impending economic downturn, the first since The Great Recession of 2007–2009.
All Americans should be concerned about these warning signs, but business growth leaders and their leadership may find them to be particularly unsettling. Economic activity can drop off so dramatically during recessions that businesses across a wide range of sectors may face existential danger. However, there are techniques to lessen the harm.
Here are five tactics that businesses may use to not only survive but also prosper during this severe economic depression.
1. Boost marketing and advertising initiatives.
Experienced executives are aware that strong marketing and advertising increase revenue. They are also aware that, in a downturn, the majority of other companies, including their rivals, will cut back on marketing and advertising expenditures. Opportunity! They should step up their marketing and advertising efforts for business growth over their rivals who are simultaneously slashing and ruining their companies.
2. Remove the bottom 20% of your clientele.
E-commerce companies are exempt from this, but everyone else should pay attention. It seems impossible. Cut clients at this particular time? Yes. And successful leaders act in this way. Every business has customers who are difficult to work with, slow to pay, or who use a disproportionate amount of resources compared to the money they bring in. Cut off these clients immediately because if you step up your marketing, you’ll draw in more clients and need to devote the same internal resources to them.
3. Provide assistance to your clients.
Make a list of potential difficulties your clients may be experiencing now. Think of ways you, your partners, or your vendors may assist clients to withstand the storm better with your team. Reach out to your clients, discover their problems, and provide assistance.
Offer to do something for frivolity if you can to avoid incurring huge expenses (you just freed up some time). Charge for anything too significant, but provide the option to pay later or receive a favorable price for the delivery.
4. Streamline operational procedures to better serve customers.
Now that you have more spare time. Utilize it to develop better deliverables, enhance internal processes, and build a system to deliver best-in-class customer service. If you want to succeed after this storm, you’ll need to outperform your rivals by providing best-in-class quality and customer service. As a result, your ability to serve more consumers will increase and customer attrition will be significantly reduced.
5. Fire your worst employees while reassuring the rest of your team that you care about their welfare.
Most likely, you still had staff since you needed all the assistance you could obtain. They don’t play well with others, consistently perform poorly, and have a host of additional problems. The time has come to let them start working for the opposition (of course, you should have done this much sooner, but no judgment: been there, done that).
Now is the time to fire them! The results will be better for both your team and your customers.
Bottom line
You can actually flourish in this storm if you adopt an offensive approach, a growth mindset of expansion, and a proactive approach to business growth.
Ready to grow your business? Speak to our growth experts and learn how to expand your customer base, drive revenue growth, and optimize your business operations.
