Trying to create stability as a small business can be really difficult, but it’s certainly not impossible. So many things are out of our hands, particularly when it comes to things like the recession and people having less disposable income. We’re here with some small business tactics to help you get that bit more stability, from getting credit insurance through to considering alternative revenue streams. Every small business is different so make sure you do your own research to find the best options for your business specifically, however in general, follow these steps and you’ll be on the right track.
Get The Right Insurance
Firstly, you need to make sure you have the right insurance cover for your business. Whilst it is an additional monthly expense, it could be what quite literally saves your business one day. Every business is different and so are the types of insurance it needs, from export credit insurance to professional indemnity insurance and everything in between, so it would be worth working with a broker to help you get the right cover at the best price. The cost of a broker won’t fall on you but they’re paid by the insurers themselves, so you don’t need to worry about that additional cost. Insurance is all about hoping for the best and preparing for the worst, so if you don’t already have thorough insurance for your business, now is the time to do it.
Focus On Customer Retention
Something else you can do to help your business maintain stability is to focus on customer retention. You may need to shift some of your focus onto new business, especially in a recession where many consumers’ habits change, however your existing customers know and love your product, so it’s much cheaper to maintain them as repeat customers than to focus on trying to convince new people. You need a balance of both of course, however if you’re not already focusing on this, you should be. Things like releasing new product ranges that the person might be interested in, providing excellent customer service, retargeting through your marketing campaigns and having informative email campaigns can all help. You could also ask your customers what they’d like to see from you next, and then reward them with a discount code or freebie as a thank you for the information.
Diversify Your Revenue Streams
Another way to provide more stability is to diversify your income streams. We know this is easier said than done, as everyone wants to make more money when they can, however putting some conscious effort into different ways you can make it happen will help to take some of the financial pressure off your business. For example, say you own a restaurant and Tuesdays tend to be really quiet, and you know you live in a community with plenty of people who are vegan. You could create exclusive vegan events on that night of the week with an offer on. If you’re a clothing brand and currently you exclusively sell swimwear but know that it’s very seasonal, you could look to expand slightly into athleisure as this is more all-year-round. You don’t want to lose focus on what you specialise in, but being open to new ideas to increase your revenue might be just what you need to do in a recession.
