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Survival tips during economic recession

By Yinka Kolawole

As an entrepreneur, one should be able to assume, manage risks and create strategies to survive a tricky economic landscape/economic downturn.

The ongoing financial meltdown is bound to have an impact on businesses and numerous individuals for a considerable length of time to come. To the individuals and businesses that were readied, this recession would turn out to be best of time and to the individuals who weren’t prepared, it would be a terrible time.

The challenge is to be forceful and innovative. Business people who survive and considerably flourish amid difficult times must have the capacity to look past the present, to conquer the imperatives of traditions, to see the firm from another point of view, and to do business in an unexpected way.

Cut some investments and focus on building your business: It is advisable to leave all investments and focus on your business in order to be able to adjust to the financial changes that happen during the recession and for that to be accomplished; your business should be your top priority. If the business remains solid through the economic meltdown, then it will become more grounded with the recuperation of the economy and you will have the capacity to purchase back more investments than sold.

Curtail pointless cost: Another survival technique is to curtail all superfluous costs of doing business. To survive recession, as an entrepreneur you should be cautious about your business expenditures. On the off chance that your business burns through cash on pointless things, for example, parties, rewards, excursions, motivating forces and some other things that have no immediate effect on your organisation’s development, then it’s a great opportunity to reduce them.

Gain stronger control of your cash flow: Monitoring and maintaining a positive cash flow during recession is vital. Ensure your monetary statements give data that is auspicious, pertinent and precise. Have the capacity to venture where you will stand three months ahead of time. Also, work closely with your clients to ensure they meet their credit commitment.

Take care of your current clients: Customers are usually referred to as the boss of the company and an organisation’s most prominent resource. Without them, your business would cease to exist. Research done by advertising specialists has uncovered that it costs more exertion and assets to discover new clients than to hold existing ones. During this recession, set up a close relationship with them and manage their complaints and issues with utmost priority.

Focus on customer service: Exceptional customer service will ensure clients return and purchase from you regardless of the fact that circumstances are difficult.

Of all the business subsidence survival methodologies that exist; concentrating on the client is the best procedure that can promise long haul strength for any business. On the off chance that you neglect to deal with your clients and meet them at the purpose of their needs, then every other recession survival procedure you actualise will be invalid and void.

 


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Comments expressed here do not reflect the opinions of vanguard newspapers or any employee thereof.