Businesses need not shut shop when the economy is not in a good shape. Recession in the economy as and the reduction in spending capacity of people invariably affect the revenues of business organizations. Incorporating changes in the way a business functions can help cut costs to retain profitability and to create avenues for better growth. Expenditure associated with each process can be given a look-in to make it more cost efficient. In fact, the kind of avenues that are available over the web make it easier for you to take up cost-cutting measures without choking your business or affecting productivity. Here are the seven ways through which you can go about the task.
1. Use low budget marketing
Internet lets you promote a product for free and rewards you with results that do bring in sales. All that you need is creativity and the ability to capitalize on the strengths of each medium. Get traffic for your website through a high rank in search engine result pages owing to your search engine optimization initiatives.
2. Request existing clients for referrals
Your regular customers are the ones who have faith in your product or service. These people are likely to recommend your products to others in case you ask for the favor. Encourage them to recommend your products and to give you the contact details of those who may be interested.
3. Encourage employees to work from home
You need not lay off employees in order to cut costs. Use the virtual communication resources to communicate and collaborate while the employees carry on with the routine tasks from home.
4. Leverage the power of social media
Use Twitter, Facebook, Pinterest and other social networks to market your products. Ask for your regular customers to give your sales initiatives a push on social media. Interact and build brand loyalty while giving potential clients a sense of reliability and accessibility.
5. Renegotiate with suppliers
Try to get a better deal from your suppliers in the changing economic scenario. If not the price, make an attempt to get better payment terms. This can prove helpful in maintaining the cash flow in business.
6. Introduce a new product line
Do not provide discounts on your existing products to attract more customers as this may dilute the brand equity of the products. Instead, launch a low-priced line of products to give customers an affordable alternative.
7. Make customer service a priority
This is indeed your best bet against losing customers in the times of slow economic growth. Customers are ready to pay a premium for good services and resist the urge to opt for another product or service as long as the services are good.
Businesses need to survive the tough times to be able to thrive in the times amicable to growth. It is important for organizations to adopt a winning strategy by incorporating changes as per the prevailing business environment. Processes can be streamlined to bring in efficiency. Businesses that are already leveraging the power of efficiency in processes have other options at their disposal. It is always possible to weather the tough times if the organization handles it properly.
About the author: Brianne Walter is a blogger by profession. She loves writing on technology and luxury. Beside this she is fond of gadgets like theSamsung E2222. These days she is busy in writing an article on Chevrolet Captiva.