EP 192 - How to thrive in an economic downturnNov 02, 2022
This week we released a very timely, and very important podcast episode that explores a topic that has weighed heavily on the minds of our members and business owners all over the world at the moment: the recession and current economic downturn.
Economic downturns hit everyone in different ways, and in this episode Tina Tower will help you to unpack whether this is likely to be a problem for you, and what you can do to thrive during economic downturn.
The only constant in life is change, and so whether you're thriving in economic downturn or it's struggle-street for your business, here are some practical tips of what you can do in an economic downturn to not only survive, but to thrive.
Map out what you can change in your business if needed.
Start thinking early about the ways you can change priorities to get through this and come out the other side. For some people, a small break or slowing down might be necessary. For others, it could be a serious pivot. The key thing to keep in mind is that things will bounce back like they always do, so changes you plan for now may be temporary.
Journal and meditate for clarity.
One of the ways that I get clarity around big changes and big decisions is to journal, meditate and to spend time thinking about the following key questions:
- What am I doing?
- Why am I doing it?
- Where am I feeling the joy?
- What am I doing for the long game?
- What am I doing for the short game?
- Am I aligned?
We don't know what's going to happen in a year's time, just like we don't know what's going to happen in 10 years’ time. All you can do is make the best decision for you and your loved ones at the time, with the information that you have available. Sometimes you're going to nail it, and sometimes you're going to look back on it with hindsight and think “that was the biggest mistake I've ever made”.
Know when to stick, and when to quit.
So often we're told to “never quit, never give up”. But sometimes one of the smartest things you can do is to quit. But on the other hand, sometimes you quit just before you're on the other side of success. Welcome to entrepreneurship!
What I recommend is looking at your business, looking at your profit and loss, looking at your profit levels and asking the big questions about what's really happening in your business. Where is your money going? Because while I don't think we should stop spending on everything, it's the time to redirect your spending on team development, marketing, and serving your community.
When everybody else freezes, that's the time for you to shine
Spend where it matters most.
When we're in a difficult time and profit is low, make a rule that you won't spend any time or resources on things that don't generate income, or enhance customer experience. One of the most underutilized things I see is people devaluing the current customer experience as a cost-cutting exercise.
But remember: they're your current customers. They are the people who are paying you now, the people who already love you. They're the most important people to love upon. So don't forget about that.
Get more customers by solving an immediate problem for your audience.
Go back to basics and answer this question: “What is the problem that I’m solving”?
Maybe you need to break it into tiny offers, or create some introductory courses that people are struggling with so that you can give your customers what they need and what they want right now to solve their biggest problem.
What can you offer, and how can you address the problem that people are having?
Remind yourself - it’s going to be OK.
I think that is the beauty of being in business for a long time is you see all the ups and downs both internally and externally, and you know that you're going to be okay.
If you're new into business, I want you to take it from me that you're going to be okay.
Be ready when it passes as much as possible by removing as much bad debt as possible. If you're treading water and the moment and are cashflow poor, focus on the things that are serving your current customers so you don't lose them. And remember: only spend time and money on things that are going to make you immediate profit.
Turn off the news, and focus on what you can control. Serve the pants off your customers and you're going to be totally fine.
When this passes, believe me that you are going to enjoy the upside like you can't even imagine!
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