How to Grow Your Business in a Tough Economy
Want to grow your business regardless of a slow economy? Here are some tips on how to make it happen.
As a small business owner, you want to grow your business — even if the economy isn’t doing great. While a tough economy can certainly make it harder to grow a business, it doesn’t make it impossible. Here are a few crucial steps to keeping your small business growing despite harsh economic conditions.
Expand your customer base
In times of plenty, it’s easy to get complacent with a few good revenue streams. But if you are too dependent on those streams for the bulk of your sales, you could run into trouble if they suddenly dry up. From a BDC study: “diversification—whether measured in terms of products and services, geography, or number of customers—correlates strongly and positively with financial success. Not only are the most diversified businesses by far the top performers, but even somewhat diversified firms are likely to outperform those that are undiversified.”
Focus on larger goals
Growing a business is generally more about the big picture than the day-to-day details. Step back a little and analyze your circumstances. Taking in the bigger picture will allow you to identify areas of potential growth. If you want to grow your business, you need to have a long-term strategy to guide your daily efforts. Now is the time to formulate that strategy.
Focus on your current customers
In an economic downturn, customer demand naturally ebbs. Before you can concentrate on growing your business, you need to shore up the customers you already have. Make sure your customers are satisfied with your services. Be proactive about attending to their needs. Improve what you already do for customers where possible. You want to make sure your current customers are as loyal to you as possible.
It can be tempting to cut down on marketing costs when the economy slows. However, if you want to grow your business, marketing will play a key part in your endeavour. Marketing can be even more important in tougher times, in fact, since demand is at a lower level. Just tailor your marketing strategy so that you are using your resources as efficiently as possible.
Have a positive attitude
In a tough economy, the temptation is to give in to the mood of doom and gloom that often predominates. But your mentality plays a huge role in whether you succeed or not. If you don’t believe you can grow your business, your odds of making progress are very low. Encouraging a positive attitude among employees is also essential.
Growth is what business is all about — you, as much as any other business owner, are not merely content with resting on your laurels. Growing your business in tough economic times may be a major challenge, but if you follow the right steps success will follow.
Please contact us if you need an experienced accounting partner who can help you grow your business no matter the economic conditions. You can also visit our blog for further information on tax planning, CRA audits, small business accounting, and bookkeeping.
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