2024 is proving to be a very challenging year across almost every sector in our economy. Businesses are really struggling with many of our customers keeping their wallets closed until there is a bit more certainty in the market. 

So what should you be doing to weather the storm?  Here are 5 business survival tactics that will make a difference:

Cash is King, but so is Profitability

You already should know that cash is the lifeblood of your business, but during a recession it is even more critical.  Review payment terms, chase any outstanding debtors and get that money in the door and also, consider whether you can get any of your customers to pre-pay for your product or service.

Maintaining profitability even when your revenue line is going up and down is critical. Scrutinise all of your expenditure and cut anything unnecessary.  In these times you want a lean business that can stay ‘in the black’.

Love Your Customers

Retaining customers is always great, but it is so much more important when some of your customers stop buying.  Strengthen your client relationships, provide an excellent service, provide extra value and deliver an exceptional experience.  If you have customers that are struggling, look at ways that you can retain their business by offering some flexibility around payment terms or offering them a cheaper option.

Adapt your Offerings

Review your products and services.  Analyse what is selling, and what is not selling.  Focus your sales and marketing effort on what people are buying and try to understand what is slowing down the others.  Be ruthless and willing to cut product lines if they are not viable. Innovate and adapt to what the customer is looking for - is it a cheaper, simpler version of what you already have, are some of your products no longer relevant in this market?  Adapt to survive.

Review your Operation

Streamline your business operation to reduce costs and improve efficiency.  Free up time for your revenue generators. Look to automate tasks, utlise technology, outsource anything that is not core to your business.

Protect your Team

Business survival will be difficult if you lose all of your best people.  Maintain a positive and supportive work environment.  Communicate openly with them about the challenges being faced and what you are doing about it.  A motivated and informed team is better equipped to handle problems and come up with creative solutions.

Making these changes will help you survive one of the worst recessions that I have experienced.  They will also set you up to thrive in the future as well.