Mauricio Rosero is the founder & CEO of M2 Studios.
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Keeping a business running and functional can be very demanding. More so, keeping that business afloat in a time of severe economic hardship is especially challenging. Unfortunately, in many cases, entrepreneurs need more time to be ready for these situations. Many entrepreneurs are ill-prepared, with little or no ideas on how to navigate the tide of global changes that affect their businesses.
With all the signs in the world, it is safe to say that businesses are going through a lot of uncertainty right now. Rising costs of running businesses, high inflation rates and other changes over the past few years have made running a business difficult. Of course, this is nothing any entrepreneur prays to happen, but it is important to note that preparing for uncertainty and challenges is crucial.
Conduct a marketing audit.
In an economic downturn, I’ve found that those who understand what to do come out victorious. First, I suggest assessing all the marketing platforms and strategies you’ve used as a business owner. During a marketing audit, business leaders should look at a variety of factors, including:
1. Marketing environment: Examine the macroeconomic, demographic, cultural, technological and competitive forces that may impact the company’s marketing efforts.
2. Objectives: Review the company’s marketing goals and target market to ensure that they are clear and align with the company’s overall business objectives.
3. The company’s marketing mix: Examine the company’s product(s), prices, promotions and place strategies to determine whether they are effectively reaching the target market.
4. The company’s marketing organization: Review the structure, roles and responsibilities of the marketing team to ensure that they are aligned with the company’s marketing objectives and are able to effectively execute marketing activities.
5. Budget: Review the allocation of marketing resources, including advertising, promotion, and research and development, to ensure that they are aligned with the company’s marketing objectives and target market.
6. Performance: Analyze the company’s marketing metrics, such as market share, customer satisfaction and sales, to determine whether the company is meeting its marketing objectives.
During this assessment, identify the more effective systems and duplicate those; then cut down on the unnecessary or ineffective elements to save costs. Identify the return on investment (ROI) you derive from your marketing systems. If the numbers do not add up or need to be more convincing, it is a good time to save money and discontinue utilizing those platforms.
By reviewing these factors, business leaders can identify any problems or opportunities and develop a plan of action to improve the company’s marketing performance.
Reposition your brand.
Repositioning your company means changing your strategy to ensure you are prepared for the future. A company may choose to reposition its brand by changing its products or services. Similarly, you can change your marketing tactics and reestablish your brand values. You can even change your image to appeal to a larger market.
To change their marketing tactics and reestablish new brand values, business leaders can follow these steps:
1. Define the new brand values and align them with the company’s overall business objectives.
2. Communicate the new brand values to internal and external stakeholders, and update marketing materials accordingly.
3. Align marketing tactics with the new brand values and target market.
4. Monitor and measure the impact of the new brand values on key metrics.
Challenges that business leaders might face when changing their brand values or image include resistance from employees, misalignment with the company’s culture and loss of customer loyalty. To overcome these challenges, I suggest business leaders communicate the benefits of the new brand values to employees, engage with stakeholders to gather feedback, monitor and measure the impact of the new brand values, and foster a culture of continuous improvement and innovation.
Focus on growth.
When preparing for a recession, I’ve found it can be helpful to focus exclusively on what generates growth. This can also allow you to expand your market share and ensure that you will have more opportunities when the economy recovers. The key is to focus on growing the areas where you have a competitive advantage.
Some companies focus on the quality of their products or services, hoping that consumers will buy from them during a recession. Others seek to offer new and improved products or services. Finally, many companies focus on retaining existing customers. They do this by enhancing the relationship they already have with buyers. However, not all companies can afford these growth strategies on their own. Consider what’s best for your company.
These tips can help businesses prepare for and survive an economic downturn. They can be applied across all businesses: micro, small and medium enterprises. Remember, adequate preparation is a requirement for the continuity and profitability of a business venture. Whether or not we are in a recession, hopefully this information can give you an edge over your competitors.
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