When uncertainty becomes a new reality on the market, business expansion is a tough goal to achieve. Still, certain businesses manage not only to remain stable under the pressure but to grow significantly. They have their strategy and adaptability to thank. In order to help to expand your business in a crisis, here is what similar approaches you can use, too.
1. Choose a scalable business model
A scalable business model is a safer choice because it enables you to be flexible. In other words, it’s better to have a multi-functional tool than a tool with only one use.
So, it’s better to pay your employees according to their performance because that would also mean you don’t have to lay them off. The more work they get done, the more money they will receive. If the workload decreased, it’s only logical the salary goes down as well.
2. Cut down unnecessary expenses
The first thing to do is to review your current expenses and identify which of them are unnecessary and could be cut down or completely eliminated. In some cases, it could be an unpleasant endeavour but it has to be done if you want to get back onto your feet and expand your business in a crisis.
Identify what is necessary for your business to run properly and remove all the luxuries out of the picture. That will help you get through the critical period.
3. Diversify your business offer
It’s a risky move to offer just one type of product on the market, especially when the market is unstable. It may sound like an excellent idea in the beginning because you can use all of your resources to invest in a single product that will be of extraordinary quality.
However, global trends do tend to change, so you could find your product not being that important or wanted in a couple of months or a year. The demand depends on the target customers, and they tend to change their interest and focus.
So, the safest bet would be to expand your offer to at least several products/services and be prepared for the changes in the market at any time.
4. Do not always go for a discount
When a crisis arises, many businesses start panicking and offering huge discounts in fear of losing their customers and profit and being left with tons of unsold products. Although it may sound like a good idea, it may not be the best option in every situation.
Let’s take luxury brands as an example, for instance, Gucci – they do not offer discounts in order not to decrease the value of their brand. Every piece of item that didn’t get sold is destroyed, and not sold for half the price. That way, they retain the right to keep their prices up and justify the name of the brand.
5. Seek a legal advisor
When a global crisis arises, it’s normal to feel uncertainty and worry about the future of your business. With the current situation in the world, there is no country that didn’t feel the blow, and entrepreneurs in all of them are looking for ways to survive this period.
It would be a good move to consult a legal adviser on what your next should be, no matter the country your business in. In case you’re running a business in Australia, a commercial lawyer in Sydney can be highly helpful in suggesting to you how to deal with the fluctuations in the market and get your paperwork and transactions in order. A good advisor can even help you form new business relationships, which could be essential for your survival during these hectic times.
6. Build client loyalty
Now is the time to show loyalty towards your clients and help them go through challenging times. You can offer special deals and discounts that will be very much appreciated. In other words, by showing support to your loyal customers, you will also ensure the cash flow and maintain a firm relationship with them. Loyalty is the best venture for your business during crises and perhaps the most straightforward approaches to keep up a solid relationship with your clients.
7. Protect your income
No matter how much money there is in your bank account, your ordinary income won’t suffice. So, you need to make sure there is a controlled and balanced flow and outpour of money. That is what will enable your business to endure the crisis and help you to even expand your business in a crisis.
One option is to try and offer early installment cashback or seek new installment choices.
8. Change how your business operates
Being able to adapt to changes is very important when running a business, especially in times of uncertainty. It’s a smart move to consult your employees and see if any of them can offer a solution on how to adapt the way your business operates. When the circumstances change, you need to change, as well. You need to come up with a new way of offering your customers your services and products.
Almost any business can survive a crisis but not many of them can grow. It takes a lot of effort on your side and careful planning. So, choose your steps wisely. Like we have just referenced, everything about building up a system is situational. For example, we have referenced the significance of zeroing in on normal clients and afterwards referenced the special case of the one-time-buy classification. Additionally, a few out of every odd business needs a similar measure of legitimate insurance, and so on.
All in all, you have to investigate your alternatives and attempt to sort out which formula for progress works in your specific situation. For any business to develop, particularly at these times of emergency, you can’t permit seeing one-size-fits-all situations. Recollect that inconvenient events don’t prop up perpetually, and soon all that turns into all-great.