It’s always hard to define when a recession is officially taking place. Whether a recession is under way or not, though, there’s no doubt about one thing: there is a lot of fear and uncertainty in the current economy. The pandemic is still very much so a factor. Inflation continues to cut into spending power.
These are factors that impact business owners as well as individuals, too. If you’re an entrepreneur, it’s important to keep the following areas in mind as you navigate the choppy waters of a struggling market over the next few months.
1. Hiring and Retention
Both hiring and retention are critical parts of a thriving business. If you can’t retain your workers, you’re going to need to spend excessive time hiring and training new employees on a regular basis. Even worse, the average cost to replace an employee can range between one-half and two times the position salary.
When times get tough, it’s important for business owners to focus on hiring effectively. They must also invest in retaining the talent already in the building. You can do this by investing in things like healthy communication and upskilling to attract qualified candidates and keep your employees happy and engaged. If you want a more formal approach, consider using the PRIDE method to direct your retention efforts.
2. The Ability to Stay Flexible and Adapt
The 21st century is already an era when business owners must remain flexible at all times. As technology advances and business processes shift, leaders must adapt to change or fall behind.
In a market pullback, it’s even more important to stay flexible. You may find that you need to tweak your business model to meet the evolving demands of customers. You may even need to conduct a full pivot in your business strategy to stay in line with their needs.
Make a special effort to stay flexible in the months ahead. Adopt a growth mindset that is willing to learn and grow with your circumstances. And keep those lines of communication open with employees and customers alike.
3. Marketing and Promotion
A recession is a time when leaders slash budgets and spending drops. When that happens, it’s easy to under prioritize things like marketing. After all, you don’t generally see the direct impact of a social media post or PR campaign. They’re nuanced and less tangible than something like the revenue of a salesman or paying your electric bill.
But the truth is, a recession is the best time to press in and focus on marketing. There are many opportunities that open up when businesses are pulling back, shrinking, and losing customers. If you can maintain the composure to still invest in marketing in the months ahead, you can set yourself up for long term success in the future.
4. Outsourcing and Third-Party Support
The last area to keep in mind is outsourcing. A recession forces you to reevaluate your ongoing expenses. If you find that you can’t afford to keep an activity in-house, you can always redirect a portion of the funding toward outsourcing it. This helps you stay focused on the things that are the most important without letting other important areas, like marketing or accounting, suffer.
TruLife Distribution has functioned as an outsourcing marketing and distribution partner for countless clients over the years. We offer an affordable, effective option to maintain open distribution channels, marketing momentum, and strong sales efforts.
As you lead your company into the uncertain future, it’s wise to keep the right things in mind. Stay flexible. Don’t let key areas like retention and marketing fall off of your radar. Outsource where you need to. That way, regardless of whether we slip into a lengthy recession or bounce back to a thriving economy in no time, you’ll be ready to make the most of the situation.