Creating a Recession-proof Business: How You Can Do It
For the past years, there have been a lot of discussions about a new recession taking place. The topic is even more intensified due to the spread of the coronavirus, leading to a great economic uncertainty affecting both small and big businesses all over the globe. Since last year, many individual workers have been laid off from their jobs, and businesses of all kinds were forced to close down.
In a nutshell, recession refers to the decline in economic activity due to a significant drop in spending. If you’re worried about your business’ stand during such times, it’s never too late to carry out some recession-proof strategies. Learn what you can do to increase your chances of riding out a possible economic storm.
Master cash flow management
Cash flow is what keeps a business alive. To achieve good financial health for your company, it’s your job to ensure the money is outflowing and inflowing continuously. And obviously, you also need to make sure that you are bringing in more money than shelling out.
Cash flow management encompasses several strategies and practices that you must learn to master to track and improve your company’s finances properly. These may include building an emergency cash reserve, setting invoice terms and timelines, encouraging early and easy payments, and driving sales with promotions and incentives. Moreover, you should ensure that every cash flow projection is accurate, from the dates to the knowledge of upcoming cash outlays. And for the last tip, do not overspend in certain areas of your business.
Focus on your customers
In these uncertain times, you must be laser-focused when it comes to your customers. Understand the current needs of your customers or reconnect with them. If you’re a business in the financial industry or an insurance agency, it’ll be useful to obtain a skip trace investigation service if you need help finding or contacting your clients. Aside from that, you can also carry out a precisely targeted and well-designed survey to gather insights about any changes in your customers’ purchasing behavior.
Following that, think about how you can generate more sales opportunities from your loyal customers. Do you need to make adjustments to your products and services to match their needs better? What about providing your customers with well-designed incentive programs?
Bring in multiple revenue streams
Another effective way to make your business recession-resistant is to build multiple revenue streams. Doing so clearly allows you to maintain your income and stay flexible, preserving your business no matter what the economy is. It’s advisable to have at least seven revenue streams. To start, take inventory of your current products and services already doing great in the market.
After that, plan the need to create blueprints and resources for your customers and diversify or innovate your current offerings. Furthermore, in creating multiple revenue streams,it’s best to take a user-centric approach to avoid wasting too much time. Lastly, be sure to keep at least one revenue stream without your own control. Don’t rely on others’ performance of offerings to succeed. That one revenue stream you have full control over is your real money maker.
Design the business to sell it
Regardless if you’re starting a small business or already running one, it’s always necessary to build it with the intent of selling. Now, that does not mean you will really need to sell it. This means that you need to successfully run the company in a way that doesn’t revolve entirely around you. A good professional and entrepreneur know that it’s essential to pay attention to your business processes and systems and whom you serve. It would be best if you also focused on what an outside investor would want to see in a business.
To give you a clear idea, would-be acquirers look for businesses with pristine and wholly transparent financial statements, had developed proven work systems, and operated with minimum wasted resources or motion. Most importantly, it is crucial to building a business with individuals or members who think and work like actual company owners. A successful company is made up of people who share in the rewards yet always take responsibility for the performance of the company.
While economic recession can be very alarming, know that you can always find ways to minimize, if not eliminate, its negative impact on your business. And during these uncertain times, there are still opportunities that can help you survive with your employees. Follow our tips and start building a recession-resistant business right now.
There is no room to relax if you want to remain relevant in today’s advancing world, and one way to achieve it is to ensure that you are keeping up with the digital trends. Almost all areas of operations and business processes have to undergo digital transformation. The shift allows businesses to be more efficient and productive, qualities that customers want. If you want to ensure that your company remains on the customers’ good side, you will have to secure digitalization.
Here are some areas that should be at the top of your priority list:
Marketing
Suppose you are looking to invest in an area you would want to innovate over other business departments. In that case, you should consider seeking those that are visible to the customer’s eyes. Customers have to know that you are keeping up with the trends. Since promotional content and advertisements are your most effective tools in attracting customers, you will find that the marketing department will be the ideal place to start the digital transformation.
Traditional methods could still be effective, but you must realize that your audience is moving towards a more virtual and mobile platform. They will be on their phones and the internet for most of their days, making it critical to pursue digital marketing strategies. Social media presence and search engine optimization could generate leads and customers for your company.
However, it can be costly to hire many people and resources for the department. Fortunately, you can outsource the tasks to a reputable digital marketing agency. The investment in customer engagement will be critical for your business, making digital transformation a priority in the marketing department.
IT Security
Innovation continues to happen for businesses, but it does not mean that everything will be for advancements and benefits. You will find that digital innovation also comes with threats. Hackers are constantly improving to attack unsuspecting businesses, risking many entrepreneur’s years of hard work.
Digital transformation, especially during the initial stages, could put your company at risk of cyberattack. To prevent hackers from infiltrating your business, you will have to invest in IT security. Create a department that focuses on ensuring that your company can respond to threats quickly and prevent problems. However, you might not have an idea of what you need, making it critical to get a managed security services provider. Your tactics, advancements, and operations will be at risk if you decide to pursue digitalization without security, making it a priority to have it in your business.
Customer Experience
Marketing aims to ensure that your business will attract customers. Building a relationship with them is a whole other process. Customer experience needs to be seamless from start to finish to increase your chances of repeat purchases. To do that, you will have to ensure that they feel like a priority. Customers have plenty of questions and comments about your products.
Entrepreneurs must find a way to connect with them, which is where customer representatives can help. Find call center agencies that can provide you with the necessary workforce to interact with customers. They will also offer facilities and technological equipment to help your business reach out to more customers. You will need the power of digitalization to make the company more accessible to people, and it starts with prioritizing a better customer experience.
Transportation
Traditional methods will remain in your business, including logistics. There is nothing much you need other than securing vehicles for your fleet. However, you will find that the surrounding tools you need for the job can benefit from technological advancements. A fleet management software will help you track down your shipments and cargo, connect you with drivers should they encounter issues, and create real-time solutions. The devices and digital technologies you can provide for your logistics will allow you to be more efficient, which will enable you to enjoy more benefits.
Digitalization is a game-changer for businesses, but it is becoming necessary for companies to stay competitive and relevant in their respective industries. However, it can be challenging to figure out where to start if you are in the initial phase. If you require a guide, you will find that these departments should be your priority.
Competition is critical for every business in every industry. If a business owner chooses to relax, their rivals might swoop in and attract customers to their companies. It would mean a hefty loss of investment. Small businesses might be enjoying a tidal wave of profits, but it can change in a matter of months if they remove their foot from the gas pedal.
There is no room to relax if you want to remain relevant in today’s advancing world, and one way to achieve it is to ensure that you are keeping up with the digital trends. Almost all areas of operations and business processes have to undergo digital transformation. The shift allows businesses to be more efficient and productive, qualities that customers want. If you want to ensure that your company remains on the customers’ good side, you will have to secure digitalization.
Here are some areas that should be at the top of your priority list:
Marketing
Suppose you are looking to invest in an area you would want to innovate over other business departments. In that case, you should consider seeking those that are visible to the customer’s eyes. Customers have to know that you are keeping up with the trends. Since promotional content and advertisements are your most effective tools in attracting customers, you will find that the marketing department will be the ideal place to start the digital transformation.
Traditional methods could still be effective, but you must realize that your audience is moving towards a more virtual and mobile platform. They will be on their phones and the internet for most of their days, making it critical to pursue digital marketing strategies. Social media presence and search engine optimization could generate leads and customers for your company.
However, it can be costly to hire many people and resources for the department. Fortunately, you can outsource the tasks to a reputable digital marketing agency. The investment in customer engagement will be critical for your business, making digital transformation a priority in the marketing department.
IT Security
Innovation continues to happen for businesses, but it does not mean that everything will be for advancements and benefits. You will find that digital innovation also comes with threats. Hackers are constantly improving to attack unsuspecting businesses, risking many entrepreneur’s years of hard work.
Digital transformation, especially during the initial stages, could put your company at risk of cyberattack. To prevent hackers from infiltrating your business, you will have to invest in IT security. Create a department that focuses on ensuring that your company can respond to threats quickly and prevent problems. However, you might not have an idea of what you need, making it critical to get a managed security services provider. Your tactics, advancements, and operations will be at risk if you decide to pursue digitalization without security, making it a priority to have it in your business.
Customer Experience
Marketing aims to ensure that your business will attract customers. Building a relationship with them is a whole other process. Customer experience needs to be seamless from start to finish to increase your chances of repeat purchases. To do that, you will have to ensure that they feel like a priority. Customers have plenty of questions and comments about your products.
Entrepreneurs must find a way to connect with them, which is where customer representatives can help. Find call center agencies that can provide you with the necessary workforce to interact with customers. They will also offer facilities and technological equipment to help your business reach out to more customers. You will need the power of digitalization to make the company more accessible to people, and it starts with prioritizing a better customer experience.
Transportation
Traditional methods will remain in your business, including logistics. There is nothing much you need other than securing vehicles for your fleet. However, you will find that the surrounding tools you need for the job can benefit from technological advancements. A fleet management software will help you track down your shipments and cargo, connect you with drivers should they encounter issues, and create real-time solutions. The devices and digital technologies you can provide for your logistics will allow you to be more efficient, which will enable you to enjoy more benefits.
Digitalization is a game-changer for businesses, but it is becoming necessary for companies to stay competitive and relevant in their respective industries. However, it can be challenging to figure out where to start if you are in the initial phase. If you require a guide, you will find that these departments should be your priority.
4 Business Ideas Amid the Pandemic for Persistent Entrepreneurs
The pandemic continues to provide businesses with a harrowing ordeal as social distancing and health threats shut down their doors. It remains a challenging process for entrepreneurs to adjust, with some small business owners even reaching a point where they have to give up or pause their ventures for a while. It can be an unforgiving situation, but you will find it possible to maintain the entrepreneurial mindset.
Adjusting to the pandemic made way for a new target audience: people who are stuck at home. If you still have the entrepreneurial spirit, you can develop business ideas that will be profitable amid all the world’s chaos. Other business owners are already providing different paths to follow if you want to pursue a business amid the pandemic.
Cleaning Services
Homeowners are responsible for keeping their house clean, but they might no longer have the time and energy to perform them. Work is starting to become a part of household activities. Work supplies and equipment will also take up a lot of space inside the property, making it frustrating for homeowners to organize and clean. Fortunately, the opportunity allows you to profit by creating a cleaning services company.
Cleanliness is essential for every home during the pandemic. Families have to secure a safe space to prevent the virus from inhabiting their homes, which requires daily sanitation. You can provide professional services, but you will have to invest in safety equipment and tools to ensure that you are not bringing the virus inside your customers’ properties. Your offers can range from sanitation and cleaning to home organizing and renovation. Homes are becoming more valuable for families, so cleaning services are starting to increase in demand.
Delivery Services
Home quarantine is necessary for homeowners because it is the only safe space to feel comfortable during the pandemic. Every time you go outside, you might be suspicious if you have contracted the virus despite practicing social distancing and wearing safety equipment. Because of the potential health complications that you might bring into your home, it will not be worth the risk of going out.
However, you must buy essential goods like food and medication. Starting a business based on delivery services allow you to prevent homeowners from risking their lives by dropping by the grocery store or the pharmacy. Hire a few delivery personnel and promote the services online to make it a profitable venture. You will find that your business idea can be beneficial, as well as life-saving.
App Development
People stuck at home will be working, which means that the property evolved from a place for relaxation to a location for productivity. However, most people feel burned out if they focus on working without creating distractions for themselves. Some of the usual activities involve going out with friends and playing sports, but it will not be achievable during home quarantine.
People can distract themselves through entertainment, so video game companies are starting to increase in profit. It might be challenging to compete with the established video game ventures, making it critical to focus on mobile apps instead. You will find plenty of opportunities in app development. The range goes from games and recreation to budgeting and social connection.
If you are struggling to come up with ideas, try to find your area of expertise. You can also try to collaborate with other people to develop an app that will translate to profits. If you are making a mobile game, you can find a company that provides 2D game art outsourcing servicesfor the characters and design. App development might not have a definitive guide, but you will find that it can be worth it since people will be using their mobile phones more often.
Mental and Physical Wellness Programs
The virus continues to be a threat to people, which is why they will stay at home. However, the four walls can be restrictive enough that their health will still deteriorate. They do not have access to fitness centers and restaurants, which could affect their mental health. It will be challenging for people to focus on at-home exercise if they do not have a good guide.
Fortunately, you can provide them with the necessary assistance by selling mental and physical wellness programs. Your efforts can help people struggling in their homes, especially those who require the essential push. Hire a few coaches and therapists to support customers through mobile apps or online platforms, allowing you to create a stable business.
Entrepreneurs need to innovate as the pandemic shows no signs of slowing down. However, it might take a while before creating a profitable venture because of the unfamiliar situation. Even if you encounter multiple failed attempts, it is critical to avoid giving up on your entrepreneurial mindset. People need someone like you to make life easier for them, starting with engaging in these profitable business ideas.
How These New Technology will Improve Logistics in the Future
Most consumers do not notice it, but there is a network of people and processes that enable goods to be transported from a source to a grocery shelf halfway around the world. The pandemic has been a challenge to the global supply chain. As borders were closed and movement between nations was strictly limited, the transfer of goods has also undergone restrictions.
Around the first half of 2020, there was a global shortage of food. Many supermarkets were emptied. Because of outbreaks, some major meat processing plants were forced to shut down. Meanwhile, some farms were forced to plow their crops because there were no buyers as restaurants around the world close down.
Later on, more and more items experienced shortages. By October, the United States and Europe were in short supply of more than half the drugs needed to treat patients infected with COVID-19. Even technology companies such as Apple found themselves dealing with a serious deficit in parts which affected the production of iPhones and iPads.
Now that economies have reopened and vaccination campaigns have started in the majority of the world, things are slowly but steadily gaining back a sense of normalcy. However, the past year has exposed the vulnerabilities of the global supply chain.
Logistics at Work
The logistics industry continued to work throughout the pandemic despite the threat of infections. Companies that not only transport but produce, store, and distribute goods strove to keep operating, sometimes with reduced capacity, to keep products that people need, including food, medicine, household products, and personal care products.
In the distribution of vaccines, there are still logistics at work. Most vaccines need to be stored in the cold. Moderna and Pfizer, for example, require to be frozen at -20 degrees Celsius and -70 degrees Celsius respectively. It is a difficult undertaking and these products need to be delivered to their destination in the safest way possible. These vaccines are precious and fragile and there is a very limited supply but a high demand.
Luckily, the technology to enable a smooth storage and distribution exists. There are refrigeration data loggers that will enable manufacturers to monitor cargo to ensure that no perishable goods are wasted while in transit or in a warehouse. There are software applications that design a blueprint that will make the whole process smooth-sailing from start to finish.
While COVID-19 has led to the global supply chain disruption, in future pandemics, the industry might be more ready. There is currently technology that is improving logistics so that, despite crises, goods can move seamlessly from production to the hands of consumers.
Robotics
The pandemic made employing robots convenient. When outbreaks happened in factories and warehouses, robots enabled work to continue. Places that long ago automated could continue production while maintaining physical distancing and other health measures.
Amazon, one of the few big winners of the pandemic, received increased demand in the past year as people locked themselves indoors. Consumers were purchasing their groceries, school and work supplies, and other goods online. The e-commerce giant was able to respond to the demand so easily by hiring new staff to work alongside robots.
Drones
Drones can potentially ease delivery, especially at the last mile when the package will be handed to the consumer, in future pandemics. People who deliver goods are at a higher risk of infections through close contact. Drones allow them to deliver packages to their respective owners without fear of becoming ill. They only need to operate the machine from a safe distance.
Amazon, Google, and other companies have already begun testing the use of drones in logistics. In the past year, CVS partnered with UPS to utilize drones to deliver prescription drugs to patients in a massive retirement community in Florida. Seniors were at a higher risk of becoming sick and being hospitalized due to COVID-19. Drones would be lifesavers in case the world once again succumb to another pandemic.
Self-Driving Vehicles
Truckers were at a higher risk of catching COVID-19. The nature of the job involves coming in and out of places, interacting with other truckers and logistics people, and, sometimes, dealing with little sleep, poor nutrition, and lack of exercise.
The technology is not ready yet, but self-driving vehicles can take some load that human truck drivers have to transport from state to state. Right now, the technology is only used across short distances such as in warehouses.
The pandemic was exacerbated by these shortages in the global supply chain. The past year should be treated as a test to see what else can be improved in the entire process. One day, if the world experiences another pandemic or crisis, the same issues will not be present.
How to Stay Financially Stable during the Global Pandemic
The global coronavirus pandemic has caused many people to lose their jobs. During these difficult times, people should use their emergency savings to stay financially stable and weather the crisis.
This, however, isn’t always the case. A news report from 9News revealed that 61 percent of Aussies weren’t saving money during the coronavirus crisis. This meant that they won’t have anything to fall back on if they experience financial hardship.
If you’re one of the fortunate people who are still employed during the pandemic, you’ll need to make sure that you’re taking steps to stay financially healthy. The last thing you want to happen in your life is to lose your job and have nothing to pay off your debt and other expenses.
Here are a few strategies to help you handle your finances effectively during these times of uncertainty:
Never save or set aside money blindly. Create financial goals and take steps to achieve them. If you’re planning to purchase your first house after the pandemic, for instance, you’ll want to make sure that you set a specific down payment goal before meeting with a professional mortgage broker.
When coming up with financial goals, take note of these tips:
If you have free time, use it to bump up your take-home pay. You could use that extra cash to further increase your savings, pay off your daily expenses, reduce your debt if you have one, increase your emergency fund or invest it in profitable assets.
When looking for ways to earn more money, take a good look at your skills and talents to find a side hustle that you’ll enjoy. If you like cleaning, for instance, you could offer your services as a house cleaner. Alternatively, you could wash high-profile cars or other vehicles and charge a reasonable fee. Finding a side project you’ll enjoy doing will make it seem more like a hobby and less like work.
Spending your money wisely will help your hard-earned cash go further, especially during the pandemic. If your spending habits have remained the same for several months, allot time to re-evaluate them by going over your purchases.
Here are a few ways to help you begin cutting down your expenses:
Forgetting a payment can result in late fees and penalties – expenses that will drain the funds in your bank account. What’s worse, late fees are a sure-fire way to ruin your credit standing. When your credit score dips, you risk paying higher interest charges on any future borrowing.
So, make the most of automatic payment options for credit card bills, loans and utilities. Some companies may even provide a discount if you set up a recurring payment.
If the COVID-19 pandemic has made you feeling overwhelmed, consider reaching out to a professional who can help you keep your personal finances on track.
Achieving financial stability is doable even during these challenging times. Apply these personal finance tips in your life, so you can weather the crisis and work toward a better future for yourself.
As the saying goes, it’s never smart to put all your eggs in one basket, and the smart investor would always look to other places that can generate profit like a successful tech startup, investing in indexes, understanding cryptocurrency, and many other financial instruments. Of course, there’s no denying that it can be a hassle to manage all of these at the same time, but we also can’t deny that grasping all facets of the market gives you an edge as well.
So, today we’ll be going over the real estate market and why small and medium business owners should look into investing in housing and properties. Specifically, we’ll be going over the target house-selling criteria to help newbie investors find the perfect properties to purchase and sell in under three weeks.
My Business Is Doing Fine, So Why Do Real Estate?
Of course, we wouldn’t blame you for being skeptical. If your business is doing fine as it is and steadily growing despite the adverse effects of the pandemic, it’s only natural to think that you’d stimulate and continue to reinvest capital back into your business. However, there are distinct benefits to owning real estate, features that you won’t necessarily get to enjoy with a business alone.
Diversification And Appreciation Of Investments: Firstly, buying properties and owning real estate investments is one of the most accessible ways to diversify your investment portfolio. Furthermore, these tangible assets also appreciate over time. So, unlike your business that is bounded by performance, homes typically increase in value regardless of what you do.
Passive Rental Income: Secondly, there’s no telling when we’ll face another economic event that causes instability in the market, and just because your business survived now won’t mean it will have the same fortune later. With real estate investments, you can create more revenue streams through a passive rental income and even house-flipping, which can net you extra money in case something were to happen.
So, What Should I Look Out For?
Lucky for us, creating a target house-selling criteria is fairly simple and doesn’t require as much technical knowledge as you’d expect. Of course, you could get by much easier if you had the help of a real estate agent or expert, but a lot of the analytical tools used in business still translate into the real estate market.
#1 Focus On A Neighborhood Close By
While there’s merit in penetrating new markets, we strongly recommend focusing on neighborhoods that are nearby and in proximity. The last thing you want to happen is the off-chance of overlooking something important and having to go out of your way just to get to the property. Sure, later on in your investment strategy, it’s perfectly fine to expand your horizon, but starting out must also start somewhere close to home.
Accessible And Easier To Manage: Fixing up a property to sell or rent out can go by as quickly as a couple of weeks or last upwards of a couple of months, depending on how long it will take to make the place liveable and get the right price. So, you’ll want to be close by so that it’s more accessible and easier to manage.
Strong Grasp On Local Housing Market: Choosing a local neighborhood also gives you the advantage of a strong grasp on the local housing market. You know the lay of the land and can easily compare how well the property stands in comparison to others. Plus, you can isolate your search on house-selling apps to that specific area.
#2 Sales Activity In The Area
Just like how you would analyze the saleability of a product by its sales performance and engagement numbers, you will also want to be critical of the sales activity in the area. Poor sales performance and sale signs that have been put up for quite a long time mean that the neighborhood isn’t as desirable as it would seem. So, stick to neighborhoods that indicate otherwise.
Comparing Selling Price: In terms of sales activity, another important factor consider is the selling price of homes. Low-end and more affordable homes are much easier to find and sell, but you run into the difficulty of turning in a profit at times. On the opposite end, high-end and luxury homes have great appeal but require a substantial amount of cash as a downpayment. So, we recommend sticking to the median price where most people will buy.
#3 Overall Appeal Of The Home
Last but not least, you want to gauge the overall appeal of the home, considering all aspects such as comfort, aesthetics, and everything that a homebuyer would think important. For example, a home that’s reminiscent of Mediterranean architecture is sure to catch more eyes than ones that are more plain-looking. So, look for homes that offer a distinct advantage or unique touch.
Expand And Grow Your Personal Portfolio
As a business owner, you should know firsthand the importance of positive cash flow and how your personal portfolio directly ties in with earning potential. So, expand and grow toward real estate investments, and let the streams of income do the talking.
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