Ok this is now official. The Nigerian economy is in a recession. That means reduced economic activities and sales for most businesses. This is a critical period and businesses need to take proactive measures to stay afloat and ride the tough times.
Here are critical steps to take to safeguard your business, and maybe even thrive in this period.
1. Conserve Cash
This is not the time to become extravagant. Conserve cash and reduce costs, wherever possible. Business activities will be reduced, and it makes no sense to maintain or increase business spending rates, except such spending increases output and sales
2. Communicate with your costumers
Recession affects everyone, both businesses and customers. Talk to your customers and get some insights on how well your business is serving them. Take the feedbacks and find a way to fine-tune and improve your service delivery. That helps with customer loyalty, which could be critical in surviving a recession.
3. Introduce new services
Try and become more versatile and diverse with the range of products or services you provide to reduce the risk of your main product or service suffering a drought of customers. This can also help ensure the longevity of your business in the long run. So for example, if you deal in footwear, it might be a good idea to start selling footwear protection materials to grow your customer base.
4. Maximize your human resources
Recessions are very difficult for businesses to deal with. Therefore, the existing personnel have to be managed efficiently. If you have to let go a few employees, do so and try to share the tasks efficiently amongst the remaining employees e.g. several tasks can be undertaken by a single staff to save on costs.
Also, listen to the needs of your employees. They are at the forefront of the business and they would have insights that could be beneficial to all parties
5. Find new ways to bring in more clients
Getting new clients is always a favored goal of well run businesses. Recessions are a great time to expand your client acquisition scope and strategy. For example, you might consider taking out Ads on platforms you have never used before or targeting more clients using a completely different approach. Some things to consider depending on your business could include; flyers, radio jingles, stickers or even painting a moving vehicle with your business Ads.
image courtesy: verdanta