Due to recent events and the unstable economic situation around the world, business owners feel like they are on a powder keg. If the crisis does not affect large companies so strongly, the owners of small and medium-sized businesses feel it in full, encountering difficulties, problems and incurring losses. Entrepreneurs panic, not understanding how to save their offspring, and even analysts predict that the crisis will be much more serious than what happened in 2008.
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You should not give up on your business ahead of time. Doing business in a crisis is not an easy task, you need to pull yourself together, stop panic, be judicious and optimize all kinds of expenses. In our article we will try to tell you how to keep your business in crisis and stay afloat.
Optimization of business expenses: assess your ability to pay
Any business has stable expenses, but in times of crisis it will not be possible to spend as before. It is necessary to calculate all items of expenditure and divide them into strategic and non-strategic.
Strategic expenses are investments that are used to increase sales, attract new customers or visitors, and also directly affect the growth of profits (marketing, promotion, advertising, special offers).
Non-strategic expenses are used to support business activities. These include rent, equipment, maintenance, and everything else that is necessary to continue doing business, but not directly profitable.
Optimizing costs in a crisis
Which directions should not be thrown, even during a crisis
Many entrepreneurs make common mistakes when cutting the wrong lines to save money. Hasty decisions can play a cruel joke and when you try to save money, you will simply ruin your business.
MARKETING
By cutting back on your advertising budget, you increase your chances of closing a business. It is possible that this will not happen immediately, but several months after the decision was made. All businesses have customer acquisition through word of mouth, delayed conversions, and the results of past advertising campaigns, which will provide customers as soon as possible after the ads are turned off. You may think that everything is going well without advertising, but when this resource is depleted, there will be a sharp decline in everything.
Without advertising, even the most loyal customers can soon forget about you, if not fueled by interesting offers and special promotions. Believe me, people will not monitor your resources in search of interesting things – they are not up to it now.
In the case when your marketing expenses make up a large share of the budget, it is worth thinking about optimizing advertising channels and calculating which of them give conversions and which ones work for brand awareness. In most cases, many offline advertising campaigns should be migrated to online.
OLD CLIENTS
In times of crisis, attracting new customers can be quite difficult. Pay close attention to old and proven customers. Remind yourself by SMS or email newsletters, make unusual offers, make individual commercial offers.
