Small businesses face a lot of challenges from the get-go, due to the limited capital and reserve funding; the challenges only get worse in an economic recession. In Nigeria today, we have an economic downturn and it has affected a lot of businesses around the country, both big and small. However, instead of small business owners to panic and shut down their businesses, there are a few ways to still efficiently run your business.
1Monitor your cash flow.
This is extremely helpful because in monitoring these costs, you can find ways to find out what needs to be cut, improved or reduced
2Look for ways to cut costs.
This may be by removing or reducing the inventory of goods that are not usually ordered, or discounting goods that move slowly so that you can make room for goods that are more frequently requested.
3Focus on customer service.
It is important to keep the customers that you have happy so that even if you don’t get new customers in the economic recession, the old ones will still be around
4Improve your employee productivity.
Letting go of employees during a recession isn’t always the best idea. Instead, make them feel appreciated with small bonuses and incentives so that they can give their best to the business.
5Be active on social media
and promote your business through free channels so that you can attract potential customers. Marketing is really important in a recession because people are not actively looking to spend money, but if you are actively marketing, you can get new customers.