Whether you call it a bear market or a recession, it only means one thing.
An economic SLOWDOWN.
But the great news is, it doesn’t mean the economy will STOP and you can still thrive in bearish conditions.
I’ve interviewed 50 successful business owners and multi-millionaires and the biggest takeaway is to add 10% in the following aspects for every 1% drop in your revenue.
1. Time, Value and Effort
When the path is smooth and flat, it’s easier to pedal your bike and reach your destination, right? But as it gets rougher and steeper, you exert more effort. But Whilst it might take longer to reach your destination, you will get there eventually.
The same principle applies to businesses. Add 10% in time and effort so you don’t compromise anything and reach the same business objectives. Let’s say you work 36 hours a week, stretch it to almost 40 hours and curate more strategies to grow your business.
And as for the value, the key is to offer more freebies like webinars, e-books, product samples or whitepapers to your market. According to our internal research, these are your best lead magnets.
I’m not a pessimist, I’m just prepared.
Thomas Jefferson once said, “I find that the harder I work, the more luck I seem to have.”
2. Marketing and Advertising
Crazy, you say? But hear me out first.
Most small businesses spend around $1000 on marketing every month. By simply adding 10% or a slim $100 to your budget, you can get more exposure and more quality leads.
Now, here’s another win.
Take note that most businesses cut back on marketing and advertising activities in a challenging economy. So needless to say, it will become easier for your business to stand out and position it at the forefront of the industry once the economy bounces back.
3. Get Help
The Association for Talent Development found that mentorship resulted in 88% of workplace productivity, making it a solid investment for your business, especially during economic headwinds.
You might also want to boost your income-producing assets, a.k.a hiring high-quality employees or investing in technology to automate your business processes.
Before you shun this idea and say it’s going to rip your budget, have you ever thought of outsourcing employees overseas? This can reduce your labour cost by up to a staggering 70%. You can read more about it HERE.
Ideally, the cash runway period for start-ups should be good for 12 – 18 months. In a bear economy, stretch it to 10% more.
I encourage securing additional credit to make up for possible cash flow interruption during an economic downturn. Or, you can free up your existing credit and set it aside for a longer cash runway.
Let’s not forget what Robin Sharma said, “Recession is an opportunity in wolf’s clothing.” And in these challenging times, think like Little Red Riding Hood.