10 Tips For Business Strategies When Facing An Economic Recession – Today, Indonesia is entering a difficult economic period like in 2008: the economic recession. A time that makes sad memories for business people to bounce back. The storm of the corona virus pandemic since the beginning of 2020 has apparently eaten up the sectors that are the defense of businesses. economic sector. However, like it or not, business people have to prepare everything. An economic downturn or slowdown is an unavoidable reality for anyone who has been in the business world.
You or your competitors must prepare for the storm of recession that is expected to last quite a long time until 2022. As long as the pandemic is not over, business people must rack their brains on how the business can survive even though it has to experience a downturn. Therefore, a diverse and mutually protective business strategy is needed in the face of a recession. To find out more, you should read carefully first and apply this business strategy so that you are ready when facing an economic recession.
10 Tips for business strategies when facing an economic recession
1. Manage finances
Having a reserve or emergency fund is quite important when facing a recession. With it, you can know which parts need to be patched or pushed to meet your needs. However, the most important thing is to manage finances. The trick, you can map out which income and expenses are a priority. You need data, it can be in the form of offline or online. However, it would be better to use a spreadsheet for easier financial recording. From there, you can project your income and expenses in the next few months.
2. Control the variable cost
One of the effects of this pandemic is a drop in sales. The reason is as previously stated: the decreased mobility of people will automatically reduce the purchase demand for various types of products sold by business people. For example malls, restaurants, cafes, car and motorcycle dealers, hotels, tourist attractions, airlines, to gadget outlets; all experienced a significant drop in sales. The simplest way to deal with falling sales is, of course, to reduce variable costs (or costs that fluctuate according to sales volume). In other words, reduce production if the culprit is the producer. Or reduce the volume of goods if the business is as a reseller or sales agent.
3. Control fixed costs
In addition to variable costs, another strategy for a business to survive is to cut fixed costs. These fixed costs are costs that are relatively the same, even though sales drop. When sales fall due to the economic recession, this fixed cost should ideally also be cut. Because if not, it will automatically become a heartbreaking financial burden.
4. Apply changes
Now that you’ve identified the problem areas in your business, it’s time to make changes that will make your business more resilient in any economic climate including during a recession. This could include: realigning your staff or restructuring your organizational chart, evaluating products and services, adjusting benchmarks and projected growth targets, and prioritizing issues that have the potential to hurt customer satisfaction, business culture and your bottom line.
5. Create relationships with customers
Instead of thinking about how to attract new customers, you better manage existing customers. Because, they are the ones who really understand how the quality of your product or service is. Maybe you don’t need to offer a new product but a certain price promotion. From an affordable price, customers are pleased to transact again. In addition to offering price promotions, you can communicate by sharing any stories, such as handling health during a pandemic. It’s not just about your product or service. Because loyal customers are the key to the continuity of your business.
6. Build connection with clients
One by one businesses collapsed with the recession. If you don’t want that to happen, apart from creating relationships with customers, you can also build connections with clients. Of course, clients don’t want your business to fall too. So, make the best service for your clients. Maximum service makes it easier for you to continue your business. When clients are satisfied, they will share their experiences when using your product or service. From there, you can build relationships with new clients.
7. Find alternative income
In the era of a pandemic, especially a recession, there are many things that must be avoided. So, to overcome this, you must be able to change it in various ways, not only selling online. You can also offer new products, create webinars, or provide online consultations. In addition, if you choose to walk the digital path, don’t forget to use a website in building a business to maximize advertising. This method is the best so that your business or business continues to grow.
8. Sell online aggressively
For some types of businesses, this is a reasonable choice. The drop in sales of some businesses was due to the fact that there were restrictions on people’s mobility. Through online sales (via social media, via online marketplace or also via Gofood), the drop in offline sales can be compensated, and even turnover can even increase. For example, now there are many food outlets that can survive because they join Gofood and Grabfood services, even though their offline sales are suspended due to the pandemic. The point is that during a pandemic like now, many businesses have to aggressively sell online. They have to start seriously doing digital marketing; and can’t just rely on conventional face-to-face sales like they used to.
9. Give clear goals tujuan
Every time they enter a problem, business people sometimes start to doubt. Is the path he chose really appropriate or just stop here. Therefore, to fit the track, business people, including you, must provide clear goals. Where do you want to take your business next? Leveling up or staying that way is important to survive in a recession. So, to find out, look at the data that has been managed. Is it still possible to walk like that, or change the steering wheel using another way?
10. Serious evaluation and monitoring of changing external situations
External factors such as the dynamics of government policies related to Large-Scale Social Restrictions (PSBB) in Jakarta and their impact on business are things that we must continue to follow because situations can change in minutes, even seconds. Therefore, it is very important to follow the development of the issue, analyze its impact on the business, and determine the most appropriate strategic steps for the company and employees.