A lot of entrepreneurs panic when the economy enters into a recession, fearing they will not make it on the other side of the downturn but many successful business owners have seen bad economic conditions and have survived through them. Others even thrive through these downturns. There are ways to remedy the woes that come with a downturn or a stagnant economy.
Understand your business model.
Firstly, it is paramount that every entrepreneur knows and understands their business model thoroughly. For instance what are the drivers that promote activity and growth in your business? If your business growth is based on market growth, you might need to adjust your plans a bit for the next quarter or so to ensure your growth is not largely affected. On the other hand if you have an innovative business model that disrupts the way an industry operates like Amazon or Uber then chances are that you won’t really be affected.
Your Customers. Your Clients. Your Market.
Your growth will always be based on your customers, whether you are providing a service or selling a product. You need to understand your customers and their behavioral patterns to determine how they will react to a downturn. If your customers are other businesses you might not really be affected but if your customers are the end users you probably need to be more diligent in ensuring you keep your market.
Your competitive advantage. Your selling point.
When he economy is in recession people tend to panic and want to spend less and only on needs. Take this as an opportunity to enhance your competitive advantage in order to give your customers reason to still spend money on your product or service. Quality and service delivery make for good value for money. Done diligently, this could even make room for you to attract new customers.
So DON’T PANIC. I repeat, don’t panic! There’s always opportunity for growth no matter the economic climate, you just might need to work a little harder to achieve this growth under harsh economic conditions. Remain positive keep pushing and make the necessary sacrifices to realize your dreams no matter what.