For the first time since 2020, more small businesses taking part in the Federal Reserve's 2023 Small Business Credit Survey (SBCS) reported that their revenue and employment levels had risen over the past 12 months. In addition, the survey showed that the number of small businesses operating at a profit increased from 35% in 2021 to 45% in 2022.
This is good news for merchants and sales professionals who have been on a roller coaster ride for the past several years. Supply chain slowdowns, inflation, layoffs, and budget cuts, took a toll on many businesses. But with every economic downturn, there are always great opportunities, and while there are challenges, there is also great potential for growth.
Your business can thrive even during difficult times with the right strategies. Here are ten suggestions to help you grow your business, no matter the economic climate.
1. Prioritize your existing customers. Focus your efforts where you'll get the best return on investment (ROI) — your current customer base. Acquiring new customers costs five to 10 times more than keeping the merchants you have. By gearing marketing and sales efforts toward retaining your existing customers, you can build long-lasting relationships that will benefit your business once the economy finally levels out.
2. Diversify your income stream. In an uncertain economy, relying on a single income stream can be risky. Explore new revenue opportunities, including launching new products or services and expanding into new markets
3. Deliver long-term value to your loyal customers. Surveys show that 68% of SMBs don't return to a business when they think the company is indifferent to them. Creating a business environment where customers feel acknowledged and empowered can help your business scale no matter how the economy fluctuates.
4. Optimize your operations. Streamline your business operations to reduce costs and improve efficiency. Analyze your supply chain, inventory management, and staffing levels to identify opportunities for cost savings and process improvements.
5. Play the long game. No matter how valuable your product or service is, some B2B sales can take years. The challenge involves getting multiple people with different agendas to agree on your offerings. With an increasingly competitive marketplace, developing new leads can be challenging and need much more time and effort to nurture.
6. Maintain sound financial management. Closely monitor your cash flow, expenses, and financial projections. Review and update your business plan. Implement cost control measures where necessary and seek professional financial advice to help you navigate economic uncertainty.
7. Stay informed and adaptable. Keep updated on the latest economic news and industry trends to help you make informed decisions. Be nimble and quickly pivot your business strategies to respond to new challenges and opportunities.
8. Invest in marketing. According to Demand Gen's B2B Buyers Survey, 80% of respondents indicated that a vendor's marketing content significantly influenced their buying decisions. Focus on targeted, cost-effective marketing strategies that deliver results. The best plans include an emphasis on social media. With over 4 billion users spending about two and a half hours a day utilizing its platforms, social media has become a robust lead source for sellers. What best describes social selling? More than anything, social selling is about building relationships.
9. Foster a positive and resilient mindset. Cultivate a growth mindset and maintain a positive attitude, even during these challenging times. Encourage your team to focus on long-term goals and be open to new ideas and innovative solutions.
By implementing these strategies, you can increase your chances of growing your business. Stay focused on your goals, adapt to changes, develop strategic partnerships, and maintain a resilient mindset, and you will succeed.
About Quikstone Capital Solutions
Since 2005, Quikstone Capital Solutions has been an endorsed provider of POS companies helping thousands of their merchants with easy, fast, and flexible working capital for all their business needs. To learn more, contact us today.
