So many efforts have been put forth to stave off the economic effects of the coronavirus pandemic lockdown. The government has been increasing business and employment grants. The Bank of England has already injected 100 billion pounds to the UK economy in hopes that quantitative easing would help markets whirl and churn. Even private organisations and non-profits have banded together to help preserve what little stability the economy has left. Unity is certainly at the very core of the United Kingdom at this moment. So mainly in this article, we will be discussing on how to sell in economic crisis.
However, even after much effort has been poured to prevent what now seems to be inevitable, one thing remains certain: After coronavirus, another pandemic is to be expected.
One that will strike humanity indirectly – the global crash of many countries’ economies.
Realising in Economic Crisis
Then again, it’s not like businesses are put up the same way for the same purpose. While there may be industries struggling to make ends meet at this time (e.g. Aviation, Tourism, Hospitality), there are also industries thriving at the peak of the pandemic. You can even say that this crisis has worked incredibly well in their favour (e.g. Medical Supplies, Pharmaceuticals). With that said, all hope is not lost in the face of an economic crisis. Depending on the industry your business exists in, and how well it adapts to the current economic climate, you may just be able to turn the tables to your side.
We are past the first half of the year 2020, and if your business has managed to survive up to this time, then it’s likely that you have something that can keep your finances flowing. All that’s left to do is to identify and capitalise on those factors that are keeping you afloat. The remaining half of the year can either make or break your company – and it all comes down to how well you can sell.
We are heading into a deep recession – much severe than what we are currently experiencing as we ease out of the coronavirus lockdown. As they say, “it’s likely to get worse before it gets better.” Thus, to ensure the survival of your business, you have to innovate the way you sell – and fast. Here are some suggestions that you may want to consider when coming up with your business plan this 2020:
Here’s another article you can check on about recession.
Consider Where You Place In The Priority List Of The Current World Market Handling Economic Crisis
As you may have already heard on the news, and practically everywhere else, many Britons have lost their jobs or are in danger of losing their livelihoods before the year ends. Because of this situation, many individual’s financial confidence has gone down considerably. Not knowing whether you’ll earn a salary by next month or not can make you feel very anxious about the future, and so you are more inclined to limit your spending to prepare for such an uncertain period in your life.
The first thing that most people will cut off or avoid are unnecessary expenses, aka spends that do not directly contribute or impact their everyday lives. Needs, in other words, are prioritised over wants – as they should be given the current world situation. However, this sudden shift in buying tendencies can impact many industries negatively.
Aside from businesses that offer bare necessities such as food, water, electricity, medical care, etc., companies that offer products and services which are considered a luxury or for leisure purposes may not do well at this time. In fact, several companies like Victoria’s Secret – a renowned brand for women’s lingerie, scents, and apparel – have already filed for bankruptcy due to the lack of incoming sales and overwhelming costs of operating their individual stores worldwide.
Positioning in Economic Crisis
Given this, the first thing you have to consider is where your business lies in the current priority list consumers have. If your company does not necessarily produce goods or provide services that are considered a primary need by the majority of people, you may want to consider more strategic options to sell.
If you have more than one company and many of them are dead weight at this time, you may want to consider freezing or shutting down the operations of those companies entirely so that the companies that do remain can get more attention and focus. Being left with just one business that continues to profit at this time is much better than holding on to several businesses that are clearly deadweight. You’ll end up offsetting profits from your thriving business to cover the expenses of the negatively impacted ones.
When the ship is sinking, you unload the non-essential cargo. Otherwise, nothing will be saved.
Prioritise The Production Of Goods That Sell Well
And innovate them however way you can. Chances are, some of your products are doing a lot better than your other products because they can cater to the needs of the current market well. If this is the case, you may want to change the priority levels during production and give more attention to those products that have higher demand. You may even want to consider innovating them so that they become more relevant to buyers’ preferences.
On the other hand, products and services that don’t sell well at all can be discontinued temporarily to give way for those that actually sell. This way, you can maximise the use of resources and cut down losses, especially if you’re manufacturing perishable goods. Reprioritising your product line up so that it suits the current economic climate may very well save your business from bankruptcy.
Obviously, this is no time to be experimenting. You have to play it safe and focus your efforts on what data shows to be more effective and profitable product choices.
If you are seeking more advice on how you can repurpose your business so that it would snugly fit into the present world situation, Annette & Co. is here to offer you a FREE consultation. Annette Ferguson – Chartered Accountant and Certified Profit First Professional – can help you unlock financial strategies to improve the profitability of your business amidst an economic crisis.
Before you make any drastic decisions, seek out a professional’s opinion. You can also follow us on any of our social media channels where we keep you up-to-date with the latest news and updates surrounding Coronavirus and UK businesses.