How to Ensure Your Business Grows during a Downturn
It can be hard enough running a company from day to day, without the added stresses of an economic downturn or a global pandemic. At the moment, many people are being forced to work from home. Some companies have been put on hold, while others have been trying to diversify. It’s important to look at how to ensure your business grows during a downturn now more than ever.
Some products continue to sell while others have become low priority. No one wants their company to crash during this time, but how can one avoid it? Who knows how long the COVID crisis will continue? What can be done and what changes should be made? Let’s consider some strategies right now!
Consider Company Borrowing
Many people are fearful of doing this, but it could be the difference between a company staying afloat or sinking. If a quick cash injection is needed to fund a new innovation, the extra borrowing could pay for itself long term. When time is essential, easy approval business loans can be helpful. Some are granted without the need for extensive paperwork or even a guarantor.
Unsecured borrowing charges a higher rate of interest, but the comfort is that a person’s home or office won’t be held as collateral in case the repayments fail.
Slim Down Expenses
Someone may be disappointed their sales campaign or conference has had to be canceled. A better way to view it would be in terms of the reduced outlay at a time when people are being forced to reduce expenditure.
If the offices are rented but everyone is working from home, perhaps the premises can be vacated for now to save money.
If there are things the company usually invests in at this time, consider reducing the sum rather than stopping it completely. This will provide some form of continuity, even if it is in a reduced capacity.
Restaurants that aren’t able to receive guests have diversified into food deliveries and takeaway services. People who normally provided food for hotels are now selling to the public. These are great survival tactics.
Companies are foolish to think in terms of damage control or fire-fighting alone. Some investors in the stock market have been waiting for years for this opportunity! The changing market has closed down some things but also created new opportunities. A company that provides towels and tissues could change to selling face masks. The art is to find a gap in supply and jump in quickly, this is key to ensure your business grows during a downturn.
Look for Opportunities
If a company primarily works on a local basis, perhaps it is time to be more present online. This could widen the net of potential customers. When the COVID challenge is finished, this area will no doubt continue to function.
Perhaps the company premises or car park have needed refurbishing for years. This would be an ideal time to get it done, with fewer or no people being at work each day.
The more strings a company has to its bow, the more chance it will have of survival. Perhaps there are side services the company could consider. If one arm of the organization falters, the others may keep going.
Stand Back from It All
When a person is busy, they are tempted to live from day to day. When work is quiet, this is the perfect opportunity to review everything: How well has the company been doing? What has worked and what hasn’t? What changes should be made as a result? What are the long term goals? In what ways should the goods and services be adapted in the future?
If people are being just as productive (or more!) when working from home, question whether everyone needs to return to the office after the downturn. Reduced premises will mean lower expenses. The extra money saved could be spent on investing in the company.
Think About Training
This could be the perfect time to invest in the employees. Knowledge gaps can be filled, and people can become even more valuable as a resource. Staff can be kept busy using online training courses. They will feel invested in, and will be happy to gain new skills.
Imagine using peoples’ new ‘in-house’ knowledge rather than paying for external companies and consultants!
Learn From the Competition
Free strategies can be gained by observing other similar companies. Have they diversified? Have they cut prices or changed their products or services? Are they laying off staff? There may be valuable business wisdom to be found here.
It’s great when organizations ride the winds of change. They view challenges as a chance to seize new markets and push new products. Times of downturn can become seasons of growth. Things will never be the same but when it’s all over, implementing these steps can ensure your business grows during a downturn.