While the precise details of the long-term economic impact of the Coronavirus pandemic remain unknown, there are many important measures small business can take in preparation for the likely upcoming world-wide recession.
1. Focus on Data
The recession is likely to be triggered as a result of rising unemployment, increased personal debt and a major crunch on personal earnings. But those businesses who have a firm grip on their financial position are more likely to weather the storm. Small business will survive if they can understand changing customer needs and the new operational challenges that will result from the changing economic landscape. Data should be leveraged to inform every business decision, and a clear data strategy will be the bedrock of business success in a post-coronavirus world.
2. Credit Control is King
Methodical credit control and debt recovery procedures are essential to successful cash flow management during a recession. You’re likely to be chasing invoices and payments more than ever before, and being paid the money you’re owed is the very means of your survival. Invoicing and the debt recovery process can be very costly and time consuming, and it can further put your small business at risk during the recession. Credit control automation, via debt recovery software and debt collection software can reduce the time taken on this labour intensive processes by 75%.
3. Diversify Into Multiple Revenue Streams
The more you’re able to diversify you’re operations, the more likely your business is to survive the upcoming recession. We’ve all seen first hand during the COVID-19 lockdown that multiple organisations have pivoted to new working practices. Schools moved to digital learning, and restaurants have focused on take-away and delivery. Likewise, your business must pivot to meet the needs to the new world. Ask yourself, how can you source new revenue streams?
4. Remain Focused on The Customer Experience
As ever, your focus on customer experience should be at the forefront of your business operations during a recession. When chasing invoices and recovering debt, the adoption of leading debt recovery software and debt collection software is the most effective way to improve the customer experience. With automated, omni-channel communications (Text, Email, WhatsApp, Chat) you will experience better levels of customer service, which will lead to more future sales. Employees can be more responsive. And managers have increased tools by which to track their employees debt collection efforts.
5. Stay Alive Via Automation
During a recession it’s likely that a human workforce may be deemed relatively expensive when compared to the cost of automation. In the face of declining profits, your business may pivot to more automated or digitised procedures. The benefits of automation are vast and varied. These include increased business productivity, an improved quality of service, and increased consistency of output.
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