The COVID-19 pandemic has been a stressful time for business owners, with many now trying to figure out how to navigate the economic downturn. Aussie business owners are resilient and often creative. For many it’s just a matter of adapting to this new environment.
With that in mind, here are four ways to try and recession-proof your business.
Hone your core offerings
People are seeking comfort and familiarity at this time. If you can continue to offer what you do best, that will hold you in good stead with your customers.
Use this period to truly master your craft. Take note of what aspects of your business your customers are most engaged with and grow those areas. Don’t waste money adding new products just for the sake of diversifying.
Keep an eye out for opportunities
This might seem contradictory to my last point but bear with me. While it’s crucial to get those core offerings down pat, don’t close your mind to bettering what you already have.
There’s been a wealth of innovation born out of the pandemic. From home-delivered cocktails to McDonald’s selling core ingredients like milk and eggs, new products now exist that we could not have imagined a year ago.
These are simple ways that businesses have improved their existing services to keep their customers engaged. The best part is, they don’t have to skyrocket your costs.
Get to know your credit score
Your business may need a little leg-up financially, which could mean taking out a business loan. Your credit score is one piece of the puzzle that informs a lender’s decision when looking at your loan application.
Knowledge is power, so having an idea of what your credit file looks like will put you in a better position when it comes to applying for finance. You can improve your score over time by eliminating debt, paying bills on time and being transparent with creditors if you’re having trouble with payments.
Evaluate your finances
Whether you’re looking to cut costs or just want to be better prepared for future downturns, regularly evaluating your finances.
Every little bit helps so if there are services that you are no longer using this is the time to cut back. By ensuring that you’re ordering the right amount of stock, you’ll save on costs and reduce your business’s wastage.
If you’re finding that it’s just not viable to cut costs any further, there are still support options available from the government and banks.
Moving forward, it’s important to future-proof your business against future recessions. Laying out a plan now to make sure that your business can weather the next economic storm.
“The opinions expressed by BizWitty Contributors are their own, not those of BizCover and should not be relied upon in place of appropriate professional advice. Please read our full disclaimer."