The UK’s current cost of living crisis is not only affecting individuals, but also businesses too. As the country goes into economic unrest, businesses need to start looking for ways to future-proof themselves to prevent dissolution as a result of poor business management during the current economic climate.
So if you are a business owner looking for how to do this, look no further! Keep reading to find out how you can secure your business’ continuity even amidst a cost-of-living crisis.
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A budget cut is not necessarily what needs to be cut
Despite what may be an obvious solution to economic turmoil, a budget cut has proven to perhaps not be the wisest decision for your business – especially the marketing budget. One research study has shown that maintaining or even increasing the marketing budget during a financial crisis is profitable since the competition tends to cut their budgets down, which means increased exposure and revenue for your business.
In staying visible during financial uncertainty, whilst competitors choose to lose visibility in favour of saving money, brand awareness and brand recognition will surely be boosted, benefitting your business in the long run. Meanwhile, those who cut down their advertising during this time are disadvantaged by having to put time and money into gaining back its visibility as the economy gets back on its feet.
Listening to your audience and adapting to their needs
When it comes to the cost of living crisis, the most affected are ultimately your potential (and current) customers. If your business is a luxury goods brand for instance, you can expect less engagement with your products as customers are less likely to spend on expensive, luxury items. Any brand selling a non-essential commodity will see less customers as they will prefer to save money on essentials during economic turbulence. So how can your business retain and attract customers?
Firstly, you must actively listen to your customers. Although you may have a set audience, this audience’s thoughts and what influences their purchasing decisions are constantly changing. You can obtain feedback or any criticisms from your audience through conducting surveys or through forums, from which the insights you collect can be used to better understand your customers – and thus determine what needs they would like your business to meet during this time.
Once you have this, you are then able to implement a strategy that can help satisfy your audience and build long-lasting, loyal customer relationships.
Investing in technology and innovation
Our society is undoubtedly reliant on technology, and as technology is here to stay, it would be worthwhile investing in technology and innovation to future-proof your business. Economic woes do settle and businesses who continue to innovate during an economic crisis are usually the ones who end up unscathed, or close to unscathed, at the end of it. Therefore, look to implement tech-based ways that can lead to more efficient workflows and streamlining processes to enhance productivity, collaboration, and creativity.
Economic troubles are the best time to start focusing on how to develop more effective business operations that will ensure the long-term survival of your business – so try to avoid pessimistic thoughts and encourage a mindset of growth.
