According to recent, report by the International Monetary Funds (IMF), the world would experience global recession triggered by the Coronavirus also known as COVID 19 in coming weeks. This is not totally surprising as the rapid spread of the virus, which began in Wuhan, China late 2019 has gradually taken over the world, causing businesses, schools, religious institutions and other organisation to lockdown.
The lockdown according to World Health Organisation (WHO) and other international health institutions is a way to curb and contain the virus. While we understand the reason for the lockdown and have advised founders to stick to remote working, it is without a doubt that start-ups and small businesses will be the most hit in these tough times.
Now it becomes a question of who will be the last man standing as many businesses will lose customers, clients and some will close down. The good news though is, some of the greatest and long-standing business till date were built and out-lived such times, if they could, you can too. Here is how you can survive a global recession as a start-up.
1. Protect your cash flow; no business can survive without money, so as much as possible ensure that you do not run out of money as that would crash the business. It is expected that during the recession, there are lower sales and therefore less cash to fund operations. The first to resolve point to resolve this would be to review and aggressively reduce cost, work with a budget and seek funds from friends and family, investors and other financial bodies.
2. Keep open communication with loyal and existing customers; there is always need to get new clients but this should not be to the detriment of existing clients, as the saying goes, a bird at hand is worth thousands in the jungle. Let your customers know your new operation mood, have a feedback form for a customer to reach you and keep serving them value.
3. Invest in technology; with the recent recession being triggered by a virus, which requires everyone staying indoor to contain it, it is obvious that businesses need to look for alternatives to the traditional methods of running their daily operations. The best bet now being technology, the world is advancing, so should your business.
4. Intensify your marketing strategy; in lean times, customers are restless, looking to make changes in their buying decision. Help them find you! Now is not the time to go into hiding, rather research where your audience is and find new ways to sell to them.
These are some key ways to stay on top as a business owner during these tough times.
