It’s no secret that the economy has been shaky at best in recent years. Most economists estimate the U.S. economy will fall into a recession during the first half of 2023. Businesses worldwide are holding their breath as we draw closer to the expected date.
No matter what happens, try and remain positive. This recession will pass, as they always have. However, it’s important to have a strategy prepared for keeping your business’s head above water whenever financial struggles inevitably hit. Here are some tips for how you should manage your business during a recession.
Continue to Promote Your Business
We aren’t saying you should spend all your marketing dollars during a severe economic crisis. But you should not cut corners and try to wait things out. More often than not, companies that continue to promote their products during recessions often come out ahead of their competitors.
For example, during the 1920s, Kellogg’s and Post were the two largest cereal brands by far. They were pretty equal in market share until The Great Depression hit. Post reduced their marketing efforts in an attempt to weather the storm. Kellogg’s approached the situation with a much riskier strategy, but it paid off. They had just rolled out a new product, Rice Krispies. Rice Krispies were inexpensive to produce and sell but popular with children thanks to a gimmick where the cereal would pop when doused in milk.
Kellogg’s dedicated a lot of time and money to promoting their new cereal, but it would be worth it. When The Great Depression was finally over, Post lost significant market share. Kellogg’s had become the go-to cereal brand for working-class Americans.
It has been eighty years since then, and Post still has considerably less market share than Kellogg’s. Had Post approached The Great Depression with a wiser strategy, things may have turned out differently for them.
Keep Updating Your Website
Recession or not, people will still have a need for different products and services. Business may slow down, but it should not come to a complete stop. This is why you must upgrade your website to be optimized for search engines. Every website has room for improvement in this department, so take some time and try to get your website ranking better. Building links to and from your website is a practical way to help your website’s domain authority.
Remember to optimize your blog posts, too! When writing, remember to use high-traffic keywords related to your industry. Since SEO is a continuous process, take some time to upgrade your old blog posts. Keep those relevant and up-to-date.
By taking the time to optimize your website, you should be well prepared to deal with any recession that comes your way.
Don’t Forget About Your Existing Customers
This one is important. During a recession, the rate at which your business acquires new customers will slow down drastically. When the economy is in a rut, people aren’t as eager to rush out and find new ways to spend their hard-earned dollars. This is why you should prioritize the satisfaction of your existing customers. These clients already know you exist and have an attachment to your products/services.
Find ways to improve what you offer. Keep your loyal customers happy. This way, when the economy inevitably goes through a downturn, they will continue to be faithful to you because they appreciate your business and want it to do well.
The thought of there being a recession can be frightening for anyone. These fears become amplified if you are an owner of a small business. Try and see the light at the end of the tunnel. Most recessions don’t last more than a year. Preparing ahead of time will ensure your business’s success even when the economy is at its worst.
Continuing to promote your business will ensure that your local business isn’t forgotten when things return to normal. Communicating with your customers will ensure that you always have a loyal audience willing to support you. Try and stay positive, and things will return to normal before you know it.