A Double-dip recession is the second recession followed by the first one. The gap between the two recessions is called a short-lived recovery. It means the economy couldn’t recover properly from the previous downturn and faced another one. The causes of a double-dip recession could be a crisis in the financial system or pandemics. Businesses operating in a double-dip recession of an economy face various challenges with a lot of pressure due to fear of failure. Stress levels of entrepreneurs reach the sky due to heaps of workload.
As the world faces a pandemic due to COVID-19, preparing your business for any unforeseen double-dip recessions is crucial. Many companies fail to survive in the second wave of recession during a double-dip recession. Here are a few survival guidance tips for entrepreneurs to follow when facing a double-dip recession:
- Look for changes and opportunities. Find ways to grow your market shares, and try moving into new markets. Introduce new and different products to the market. And increase your targeted audience.
- Identify new trends and what the consumers want. Find out if the product you’re producing or selling is what consumers want to buy. If it’s not something the people want to buy, consider introducing new trendy products in the market. Make further changes to your existing products to attract customers and increase revenues.
- Change your pricing methods. If you’re using a price maximization method of pricing, then you could switch to a penetrative or competitive pricing method. The penetrative pricing method suggests you put lower prices than your competitors. This method is suitable to increase your revenues, but it could mean you might lose due to low prices. Competitive pricing suggests you put the same prices as your competitors. It could also increase your revenues.
- Collaborate with Business Professionals. Ask your business allies, such as your attorney, accountant, and suppliers, to promote your business through their channels. In return, you can offer to promote their businesses through your own. You can also provide them with a commission to gain their trust.
- Increase and improve your marketing strategies. The easiest and cheapest way of increasing your promotion is through social media. You can also perform surveys through social media. You can start a blog to promote your business and your products. Another way to promote your business is by making your employees the company’s brand ambassadors. The best way is to use LinkedIn for promotions.
- Find ways to improve your cash flows. Try to reduce costs as much as possible to get a positive cash flow. Try to reduce your outflows and increase your inflows. If you’re looking for a loan, find the ones that ask for the least interest rates. Improve your inventory. Increase your prices, expand your market, and send and receive invoices immediately.
- Reorganize your financial obligations. If you have multiple debts you’re stuck on, refinancing is the best way out. Get a single loan or credit line to pay off all debts. You can also opt for a business credit card, which can become an interest-free debt if paid back on time. Many costs will be saved this way and can help you get stable.
To ensure that your business survives the problematic double-dip recession period without failing, you must follow these practices in your industry. At this challenging time, the owners should not lose hope and not get too stressed and instead take an intelligent approach. The key to surviving this period is finding new efficient and cost-saving strategies and executing them properly. Business owners face a tough time and must handle all sorts of operational and financial problems and how to cooperate with the staff. They need to focus on what will make the business go this time and how to cope with all other obstacles. They should always be looking for new opportunities to survive the double-dip recession.
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