Businesses are often forced to go through cycles of good and challenging times. While there is no timeline on how long it will take before the hard times come, preparation is a must. For a business, difficult times may mean unbridled competition, economic recessions, inflation, political instability, and so on. The good thing is that companies can foresee and plan for many of these challenges.
What happens in the case of a pandemic like COVID-19 for which no one was prepared? How do you ensure you carry on with your business operations amid a total economic standstill? In what way would you put your products out there when there is limited or no movement? As much as you are undergoing a grim situation, you wriggle your business out with proper planning. Here are a few strategies to help you navigate difficult times.
Here are business challenges: How to Come out a Winner:
1. Look for the Opportunity in the Crisis
During difficult times, businessmen get so worried that they experience paralysis of inaction. They would rather sit and watch the problem fester than do something about it. What they do not know is that every crisis comes with an opportunity. A careful review of the situation will certainly reveal to you the inherent chance. Is it time to give your business a different approach? Do you think the diversification of products will bring in more customers? Approach everything with an open mind, and you will spot what needs to be done.
2. Create a Better Business Model
If you want to maneuver your business through a difficult time, you must redefine it to ensure it creates, captures, and delivers value. In short, this is known as the business model. The reason is that you are likely to have a different audience during and after a crisis. So, redefine your target customer, value proposition, revenue streams, and critical resources. You might not have an idea where to start, but don’t worry – this is where a professional CFO will come in. You might have been asking “should I outsource my cfo services?” Now, this is the time.
You need someone that will look at your business model and advise you on how best to overcome the financial challenges in troublesome times. Not to mention that the basic strategy that most CFOs do is that. They will look at your cash flow and help get you on track with your financial health. And yes, all of these strategies should be in line with the opportunities that come out of the prevailing crisis.
3. Create Additional Sales Channels
The sales of a business are often a function of several things, including the number of clients, size of the transaction, and frequency of purchase. It is vital to maximizing existing sales channels before creating new ones. In short, you must strive to increase the footprint in your shop, how much each customer spends, and how often they buy. But how do you ensure all of that?
Encourage customers to come back for more by establishing a transparent loyalty system. It may take the form of stamp cards or other loyalty-enhancing strategies. You may also provide your customers with a way to leave their reviews after purchasing the products. Such a simple referral system will ensure you get new customers for your business.
4. Take Your Business Online
During difficult times, it would be impossible for customers to physically visit your shop. Why don’t you make it easier for them by taking the business online? Create a simple e-commerce website and display your products there. Not only will you be able to access people looking to buy online, but you will also have more customers. Given that many people are surfing the internet using smartphones aim to make the website mobile responsive. You may also create an app through which customers will buy products online. Going online gives your business access to a broader worldwide market. With a diversified audience, it will be easier for you to navigate difficult times.
Why would you insist on selling your products when someone can do it for you? Sometimes it helps to collaborate with other businesses within the country and elsewhere. However, it should be after the crisis has begun to subside. If you insist on entering a franchising agreement during an emergency, who will sell for you? Franchising is an excellent way of increasing your audience as well as sales. The more the number of franchises you sell, the better your business will perform. In the end, you will get increased revenues and potentially high profits. If you handle it well, franchising can help you to quickly recover from difficult times. Try it!
The trick lies in coming out of a problematic situation unscathed. How do you ensure your business will still exist afterward? Implementing the strategies discussed above is going to help you navigate a complicated business terrain. In the worst-case scenario, you should be able to at least maintain your current customer numbers, sales, and profits. But, the best strategies should aim at growing your business even further. That way, you will ensure your business survives even when a few of the customers decide to leave.