How is your company handling the economic downturn? Are you prepared for a potential recession? Let’s talk about steps you can take now to help you ‘recession-proof’ your business.
As the downturn in the economy and markets loom, and inflation continues to rise, companies are having to contemplate the “what if’s” of a possible recession.
Because there are already signs of an economic slowdown globally, the R-word, recession, is at the top of many people’s minds. This is being driven by the recent fall in the stock market, record high inflation and continued supply chain and employment challenges that plague the business market.
In a downturned economy the advice for business owners is simple: Cut fast and cut deep. This may be good advice for how you handle your own business, however how will your customers handle things within their businesses? Will they make cuts? If so, what will they cut and how deep will the cuts go? Will your organization be impacted by these cutbacks?
Here are a few things to consider as you look to recession-proof your business.
- Make sure you are essential to your customers…
Ensure that you are more than just a supplier, but rather a key and valued partner to your customers. Make the effort to ask your customers about the value that you provide to them- don’t assume you know. This is critical to your sustainability and longevity especially during a tough economy.
- Make sure you know their pain points… Learning what their continued challenges are and how you can solve those problems for them with the products and services you deliver will position you well during down times, especially if you can solve their problems in a way your competitors can’t- that’s a true strong hold.
- Make sure you know their plans …Don’t be afraid to ask your customers the all important “what-if’s” such as, what are the trigger points that would drive cutbacks? Do you have a plan on what you would cut and when? Don’t be afraid to ask them how your business be impacted? What’s their back up plan? How would they get by without those products or services? Remember, no surprises!
Having awareness into how your customers may deal with a recession will enable you to be a part of the solution for them and help maintain your position as a valued partner rather than a vendor- but you have to reach out to them in a concerted effort to ask the tough questions first!
Consider these Customer Acceleration tips that will help you make more money from your customers and make them happier in the process!
And if you’d like some help with it, please reach out at (216-876-1165) I’m happy to help you get started.
