How to Survive an Economic Downturn: Easy Tips for Businesses
In the post-pandemic economy, thousands of businesses are still struggling. According to research by Digital.com, 65% of small business owners say they’re “very likely” going to permanently close if inflation continues at its current rate.
It’s not just small businesses that are struggling, though, as recent months have seen lots of big brands start to make cutbacks by closing some of their stores. Despite all of this, there’s no need to panic. Sure, the economy isn’t great right now, but that doesn’t mean your business can’t see results. Whether you own a start-up business or an international company, these easy tips in this guide will help you to survive the current economic downturn so that you can make it out to the other side and continue to prosper despite the potential future recession.
Get Business Funding
These days, it’s much easier than before to get business funding when you need it. For example, fundinvoice.co.uk can put you in contact with an invoice finance lender. The way this works is simple:
- The right lender will be found for you
- The lender will give your business all of the money (or a percentage of the money) that’s owed to you from unpaid invoices. These invoices will then be used as security.
- Once the client pays the invoice, you can then return the money to the lender – simple.
In a nutshell, you get to generate cash quickly without having to wait around for your invoices to be paid, which is a dream for any business owner.
Let’s say that you’re a web designer who has just completed a brand-new website for a business. The business owes you a total of £2,000. If you got invoice financing from a funder, they’d be able to (in most cases) give you most of that amount within 24 hours. Then, when you eventually get paid by the business, you receive the balance (minus the fee) and that customer payment repays the funder. The fee will vary according to the nature of your business but it will typically work out to be a small percentage of your invoice value.
Aside from invoice financing, there are many different types of other funding that your business can get depending on its size and other factors. Funding and loans can seem like a huge deal – but they’re actually incredibly easy to get providing you tick the right boxes!
Hire Remote Team Members
The pandemic changed the way businesses operate forever, with remote work being a key factor. At first, people thought remote work was a short-term trend. Now, working from home has become a permanent part of the culture. It allows businesses to cut costs, gain access to talent from faraway places, and more. No matter your business’s size, it’s a no-brainer.
Boost Customer Loyalty
In an age where it’s easy for customers to switch between brands, you need to focus on customer loyalty. This way, you can stabilise your cash flow and experience long-term success.
The key to customer loyalty is value. From loyalty programs to regular discounts, there are so many different ways you can provide customers with value and incentives. Take some time to plan the different strategies that you can implement, as it’s definitely worth it!
Attend Networking Events
Collaboration in the world of business is booming at the moment. The reason for this is that it enables the sharing of resources and custom bases, too, both of which are invaluable in the current economic downturn.
In order to find businesses that you can team up with, it’s a good idea to attend both local and regional networking events with your team. Usually, these events are advertised on LinkedIn.