Survival Strategies as we enter 2023 and recession

We're targeting the industries still likely to recruit in a tough market - law firms, real estate & pharmaceuticals, to name a few, and we will need to do this relentlessly next year.
We're expanding our Manchester office to service a wider market so that we're not as exposed if one area winds down.
We will also invest heavily in our marketing - we need to ensure we're at the forefront of everyone's minds next year.

Recession means opportunity for many of my clients. They did the same in the pandemic. See opportunity for a cheap acquisition, someone fed up and wanting out, and they swoop in and buy a business at below market value. If you’re on the receiving end, it’ll often depend on your time in the game as to whether you sell out or not, but just remember there’s always light at the end of the tunnel.

One of the key survival strategies for any business operating in the depths of a recession is to keep on marketing, even though it's often the first cost to be chopped by the man in charge of the spreadsheets. Build upon existing customers' loyalty if you are selling direct to consumers, and support your distribution network if you sell products through other retailers. Those who can maintain a presence in what will end up being a more sparsely populated marketplace are the ones that will already have good cadence as we (eventually) leave recession and back into growth. So follow the advice of the old adage, "When times are good, you should advertise; when times are bad, you must advertise.”

Whilst it is incredibly tempting to come up with multiple strategies and new offerings to get us through the recession, we are also aware that consistency is key. Throwing out too many new ideas and projects has the potential to muddy our brand and confuse our customer base.

Instead we are looking at refining what we do whilst also reducing our outgoings as much as possible. We’ll be focussing on our hero products / services and looking at how we can tweak and adjust to appeal to a greater number of people without losing ourselves.

After pivoting our way through the pandemic now is a time to hone and define what we do to ensure we have are the best that we can be for our customers.

As a service-based business, we are there to meet the needs of our clients through all market conditions. During a recession, the best thing we can do for our business is to focus with empathy on meeting the changing needs of our clients. Having had 25 years of experience, I can say that the more I deliver for clients during tough times, the more resilient my business has been. As an owner of a financial planning firm, one of the things I can do for my clients is to help them understand the risks they face. I can model worst-case scenarios to see how their finances would fair. Naturally, during a recession, people worry about money and the aim of stress testing is to hopefully alleviate some of that concern.

Access to finance will be key to any business survival strategy in the New Year. Many will look towards creative solutions to release working capital – whether that’s through re-financing existing equipment or unlocking cash from unpaid invoices.

We’re predicting a rise in investment in measures that protect firms against continued instability. More will be looking to invest in their supply chain, open new doors to global trading and enter into new business relationships. Others will prioritise bringing in new talent and investment in technologies, to improve efficiencies and bring a renewed focus to the business.

Business owners need to focus on cost management and cash flow. They need to be proactive and plan ahead. If you require funding, leave yourself plenty of time to apply. Have accurate and timely information available from your accountant. Build in headroom to your cash flow. Keep open and honest dialogue with your supply chain from suppliers right through to end customers.

I expect 2023 to bring more price increases. Inflation may well fall but that means the acceleration of price rises is falling. Prices are still going up.

Control what you can and be proactive. 2023 could be the time to consider expanding into new international markets but only if you approach it strategically.

Exporting into carefully selected markets can spread your risks and help provide new sources of income and profit.

We have surrendered the lease on our office and set up a working from home / low cost flexi office cluster system.

Additionally, our salaried Directors have taken a pay cut of 30% to bring down the overall payroll number and there is a freeze on all non-critical expenditure.

We’ve actually cut our business and turn over in half and reduced our staff from 12 to just my partner, me and one other. Although most might see this as a business failure we have cut most of our costs and are more profitable.

We are tapping more into our local customers as the trend to support local economies, reduce food miles and avoid supermarkets grows. We control our local delivery to ensure resilience when facing uncertainty with couriers and we remain incredibly streamlined and cost-efficient to keep our prices competitive for the growing number of money-conscious customers.

Being self-employed is about adapting and being innovative. My latest business was born at the peak of covid, so my business needed to get through a time of transition into ‘normal life’. It’s personally helped me cope with temporarily losing all my work from my other business and it continues to thrive. It would be fair to say that I haven’t had as many commissions and online purchases this month, compounded by the increased cost of living and Royal Mail strikes. However, I’ve put myself in the public domain with the help of Mayfli and agreed to be a stall holder at some Christmas markets. I’ve also offered workshop and experience days which are proving popular. Many customers are my age and want to enjoy their time doing something different. I’m learning new skills to pass on to my clients and I’m actually excited for 2023.

We are getting hyper-targeted on who our customer is and only going after them specifically. During Covid, when other companies started "marketing" on LinkedIn, we opted to sell, go straight to the point and offer help where it's most needed. We generated 300 leads in 8 weeks.

In a recession environment, buyers don't simply disappear. They become more stringent on who and what they buy, so knowing as much about your customer as possible, their pain points, how you solve for them, and how you can approach them as a consultant and not a salesperson all matters.

We are revisiting our website, looking at the content, and applying a new framework to consider what's essential to the customer. The website will not sell your product or service unless it is eCommerce or a low-consideration item.

Don't stop marketing! I'm a marketer so I would say that. But if you stop marketing, no one will know you exist and then you won't sell anything. Stopping marketing is a sure-fire way to close your business really quickly. If businesses need to cut back they should look at less obvious ways to keep front of mind. Speak to your customers, ask them how you can help them, and in return ask them to help you. Do they know someone else who needs your service? Can they give you a glowing testimonial you can use? Give your shop or website a facelift.

In short, make ways to stand out. If times are tough now and you keep doing what you are doing, they're not going to change.

As a money coach, I will be creating more products and services to meet reduced budgets. Learning how to manage money DIY is there, but it can't help those who get anxious at the very thought of looking at bank statements. My aim is to meet people where they are - so that means providing something to suit everyone.

When the tide goes out, you find out who's been swimming naked. 2023 looks like being low-tide - and lots of small businesses have been skinny-dipping for years.

The best survival strategy for small business owners is to consider what problem your business solves - and to clearly demonstrate the value of solving this problem.

If you were selling £20 notes for a fiver, people would be queued around the block to buy from you - regardless of the economy. To survive (and thrive) in 2023, you need to ensure your business gives significantly more value than the cost - and make that no-brainer value proposition the cornerstone of your marketing.

As a small handmade business I've grown my customer base over the last year and half, keeping in touch via email so customers get to know me and the products, which helps keep a small business like mine top of mind for customers, and people coming back for presents for others too.
To help my business and the customer, I have just launched a subscription service, I offer a discount off the products which then arrive just in time for your last one to run out. It means I know I will be getting customers coming back and the customer gets to benefit from a discounted price not available normally.
Win win. 2022 has been a tough year but there's a lot to learn. If you can keep changing up what you are doing you can stay on top of the wave. 2023 is going to be tough too, just focus ahead and plan how to grow for the year. - The Ives

Biz, biz, biz … but what about YOU?

Tech neck, teeth grinding, back pain, anxiety?

Make 2023 the year you are prioritising YOUR health and well-being.

You can easily learn how to - literally - shake off tension, aches and pains and become much more relaxed, resilient and pain-free.

Not sure about it?

Observe how dogs shake off stress - then learn how to do the same and feel the difference.

You might then also wonder "Why on earth isn't everybody shaking it off?"

Get in touch for more info - you deserve to feel so much better!

Look after yourself first, and then you have more energy and stamina for your biz, too!

That's a fact.

I'm dusting off the strategy I used at the start of the pandemic back in March 2020 when my business totally disappeared overnight. I'm reviewing what I do and making sure I still want to do it. I'm reconsidering where I spend my time and money around memberships, subscriptions, marketing and networking and putting a real value on the time I spend as well as the money I spend (managing my 'timeflow' and cashflow). I'm looking at the services and products I offer and how I can provide and deliver them in different, more cost effective ways. I'm trying to get a balanced range of customers and type of work so my eggs (if there are any still available) aren't all in one basket. I didn't think I'd be back to doing this activity nearly three years on but I got through that, with my best year for a long time so I'll get through it again.

As a creative business, we will be focussing on our brand story and increasing our online sales through inspirational email marketing. Our communication would be around engagement, providing values and collaborating with other creatives in the market. We are seeing growth and engagement in niche communities and increased interest for locally made goods. 2023 will be a year to focus on locally made global goods and we plan to succeed with our niche communication and marketing.

Be resilient. Work with your current clients, diversify and just pick up the bloody phone! An email will be ignored.
This coming year will cement just how well you have looked after your previous clients, if you struggle, maybe you should re-think your aftercare routine!
Always call back about life insurance too, and make sure those that slipped the net, are advised well.
Houses will still be sold, mortgages will still be needed and if it shows anything positive, we are still hiring.

Small businesses should pay attention to the potential of AI technologies for their internal process optimization. There are often repetitive and time-consuming tasks that are easy for algorithms to handle accurately without human input. Automating massive and monotonous tasks helps managers allocate work duties more reasonably, navigate human resources smarter, speed up long-lasting operations, and free up employees' efforts for bigger tasks. In other words, it saves time and money and transforms your business into a more productive, efficient, competitive, and profitable enterprise.

With the present cost of living, energy crisis, inflation, it is difficult for not only small business but also to the population at large who are facing increase in the cost of utilities. To tackle this problem we thought that it was only right to develop a new product that could help people and us. Therefore, we came up with a zero-carbon domestic space heating device, Solar Warmer. This device consists of a new technology for heating homes at no cost following the purchase of the equipment for an extremely low price. Running is totally free.

Another product we have developed, EKRR, generates electricity utilising passing traffic which leaves zero carbon footprint. The device is purpose-built to generate electricity even at low speeds. We are sure our developments will make a major contribution to solving the present situation.

“One of the key survival strategies we are putting into place is, long term content this will not have any effect at the current time. But in the long term run will drive intended traffic towards our sales funnels. For our clients we are doubling up on advertising. Resilience will keep our clients in business. All going well, by the end of ‘23’ our £900k client Omni-channel Ad spend will have doubled. Furthermore in times of uncertainty user generated content will play a high level in building trust! Put it to good use. “Stopping advertising to save money is like stopping your watch to save time” - Henry Ford