Change is the only constant in the economy and strategies should be devised as such. Negative economic changes such as the Covid-19 pandemic hit the pocket books of businesses and individuals who happen to be customers too. Strengthening your business goes beyond financial stability, it also includes maintaining your human resources, customer retention, and efficient marketing among other things. Below are strategies to help a business build resilience to shocks.
Efficient marketing involves renewing your practices to focus on practices that increase sales at minimum costs. It is important to communicate your unique selling point through cost efficient mediums and marketing tools such as word of mouth and social media. It is also of great importance to remember to measure the effectiveness of your marketing at all times.
Customer retention is guided by the quality of your customer service. People tend to be loyal to suppliers who treat them whole, providing them with what they want and when they want it. A good way to retain and increase your customer base is by making use of loyalty incentives, having a customer oriented approach in service provision and product development as well as good after-sales service.
Maintaining human resources
Having an up to date human resources plan that is flexible to change can help a business when hard times hit hard. During an economic downturn, you may need to change your staffing arrangements and your plan should be guided by the low around employment to avoid litigation. Flexible contracts with full and part time options can be useful. It is also important to increase your staff morale during this time. With income changes and the pressure of work, mental health can be affected and this would negatively impact your business.
Building healthy networks as a business can help in the time of change through exposure to new opportunities, customers, staff, suppliers and business partners with minimal cost to your business. It can also help you to understand better copying practices and where they apply.
Hedging your business from crisis-associated risks begins with identifying potential risks in your environment. All businesses are unique and would need customized strategies for success. Eight2Five Innovation Hub understands that start-ups are more prone to crisis induced shocks and hence offer an environment that provides flexible work schedules for young teams. We also offer advisory and consultancy services through our resident experts to assist in building strategies for survival during an economic downturn.