Surviving a recession is hard enough, but when the economy slides after multiple quarters of growth (double dip); failing to make the right decisions can be very costly.
Contrary to popular belief, plenty of businesses have managed to flourish during recessions. For example, according to Inc.com, the video game industry has continued to grow dramatically and some companies have reported up to 40% growth. While mimicking the success of the video game industry is unlikely, it proves that with innovative approaches to marketing and management it is possible to not only survive, but thrive.
Moving a Business Online
Online businesses don’t require nearly as much overheads as retail businesses and savings can be made in virtually every department: premises, staff, marketing, insurance, etc. Every day, more and more people are not only using the Internet, by relying on the Internet to manage their lives, which constantly opens up new opportunities for the online sector.
Nowadays it’s uncommon for businesses not to have some kind of Internet presence; and since the recession, business owners have been utilizing free revenue generating opportunities in order to expand. While Internet businesses are far from immune to economic downfalls, moving all or part of a business online can certainly be beneficial, especially if a second or third recession is on the horizon.
Investing in New Machinery
The number one mistake that most businesses make during a recession is not investing. While saving money is certainly a priority, cutting out new investments completely can have adverse effects. In times of financial turmoil functionality and efficiency are key to staying in business.
Tools such as shrink wrapping machines can speed up manufacturing and leave time for workers to focus on more revenue generating tasks, rather than mundane responsibilities such as packaging. During a recession it’s okay to make investments, providing they further business and aren’t simply for convenience. For more detailed case studies on how businesses have used new machinery to their advantage visit Kempner.
Using Viral Marketing
Viral marketing is currently one of the hottest topics in the search engine optimization (SEO) industry. The process involves building website content that literally spreads through the Internet like a virus. Viral marketing can expose a brand to literally thousands, possibly millions of new leads. Simply put, it’s an advanced form of word-of-mouth exposure.
The biggest benefit of viral marketing is that it’s completely free, yet it yields results that money can’t buy – perfect for recessions. Meme culture is huge, and funny and embarrassing videos will often get shared on social networks and spread like wild fire. Businesses will often create these memes and incorporate their company brand in order to take advantage of these trends.
A double-dip recession isn’t a be all and end all. Businesses always find ways of turning such negative events into positives by utilizing new marketing methods and making bold investments that don’t conform to the norm. In short, the fundamental lesson to learn is that sometimes significant adjustments must be made in order to stay afloat in a fluctuating economy.