Business leaders have long known that the economy was going into a recession. It's important to prepare a business for any economic challenge, whether it's externally or internally driven. With accelerated technology and startup growth, eventually, there will be a slowdown. Technology and startup leaders must be prepared to ensure their business fares well.
Here's what business leaders can do to survive an economic downturn.
Stay Resilient and Resolute
Employees will be watching closely amid fears of uncertainty. They'll be looking to leadership to ease those fears and convey a sense of resiliency. Business leaders must remain informed of activities at all levels of the organization and remain transparent about future plans. This also means including the workforce in conversations around decisions that will likely affect them.
Market to Existing Customers
Now is the time to shift the focus from obtaining new clients to retaining current ones. There may also be opportunities to upsell to the existing client base. Instead of generalized marketing, messaging must align with customer pain points or emphasize the reasons they chose to work with the business to begin with. Account-based marketing is a smart move, connecting with existing clients, meeting their needs, and growing their reliance on the business.
See also: Is Your Business Recession Ready?
Pay Closer Attention to the Details
Cash flow is more important than ever, so leadership must examine the efficiency of the organization. Instead of an annual budget, switch to forecasting monthly. Will customers stay if their price goes up? Will automation or cross-functional collaboration save money? What other cash management options are available to stretch the money further?
If accounts receivable could use a little extra help, hiring a third-party collections agency is an option to increase cash flow and available working capital. Most agencies will work on a contingency fee basis, which means if they're not successful in recovering what's due, your business owes nothing. Let us know if Enterprise Recovery can be of service.
