Tips for Surviving a Recession for Your Home-Based Business
The economic shifts we’ve all experienced throughout the past several years have led many to speculate that a recession is imminent. With so much economic uncertainty, it’s understandable that many entrepreneurs are concerned for the future of their home-based businesses.
However, home-based business owners needn’t fear economic downturns. With a solid contingency plan in place home-based businesses can weather any economic upheaval and come out the other side stronger.
photo/ Gerd Altmann
Henry Ma, CEO of Ricoma — a leading manufacturer of embroidery and custom apparel decorating equipment — has helped many customers begin their own home-based custom clothing businesses. During his nearly two decades in the custom apparel industry, Ma has seen countless decorators launch their businesses and thrive, even during the toughest of economic times.
“Inflation, rising interest rates, and other economic factors are currently causing problems for millions of people across the country right now,” says Ma. “As such, business owners — especially home-based business owners — are looking for ways to protect their interests.”
Keep innovating
During times of economic instability, many business owners’ first instinct is to pull back, hoard their money, and attempt to ride out the turmoil without spending or investing in new services or products. However, this is one of the biggest mistakes that an entrepreneur can make.
“Recessions have a way of eroding your purchasing power. If you let your cash flow stagnate, you will see your savings slowly dwindle away to nothing,” Ma says.
Instead, Ma stresses that business owners need to build resilience and fight against economic downturns by investing in their businesses. This can be accomplished through developing and launching new products or services, as well as investing in new equipment that can ultimately lead to more revenue.
“Entrepreneurs with home-based businesses must regularly evaluate where their money is going,” Ma notes. “If any money is being wasted, those expenses need to be cut as soon as possible, and new revenue streams explored.”
Keep marketing
During a recession, business owners may be tempted to cut costs by cutting their marketing budget. At the same time, however, it’s imperative that businesses keep working toward brand awareness.
Ma emphasizes the importance of maintaining an online presence during economically turbulent times . “As an entrepreneur with a home-based business, keeping your online presence and social media platforms running and active not only allows your business to maintain relationships with existing customers during economic downturns, but also reach new customers.”
Keep serving your customers
During tough economic times, it can be easy to panic and forget what one’s business is all about,serving the customer. Even if the economy is approaching a recession, entrepreneurs need to remain focused on the value they provide their customers.
“Home-based businesses seeking to withstand a recession cannot afford to lose sight of the importance of their customer,” says Ma. “Businesses should maintain strong customer relationships through regular communication, whether through email, social media, or in person.”
A customer-centric focus to your business will not only help you retain your existing customers but also attract new customers so that your business can grow and thrive, even when the economy falters.
For Ma, an entrepreneur’s mindset is the key to weathering any economic turbulence. By remaining forward-thinking, continuing to invest in their business, and growing revenue and customer loyalty through marketing, home-based businesses can not only survive a recession but also thrive.
Author: Rohan Singh
