Learn essential tips on how to survive your business and achieve long-term success in today’s competitive market.
66 million years ago, a giant asteroid proved that a large-scale crisis can be overcome not by the strongest, but by those who can adapt. Together with Ozon, we tell you how to adapt to new conditions and successfully lead a business through economic upheavals.
1. Try to review your expenses
It won’t be possible to control the rate fluctuations, but it is quite possible to monitor every ruble of your company. Create a payment calendar and enter daily, weekly and monthly expenses, as well as expenses for the previous period. At this stage, it will become clear where you can save. Here are some ideas on how to reduce expenses:
-
Check what’s going on with corporate subscriptions. If the cost of your usual service packages has increased, it’s worth looking for free alternatives.
-
Take a closer look at your office maintenance costs. You shouldn’t impose a curfew on your employees, but it makes sense to think about moving some of your staff to remote work. Some people might like this idea — it will save money on daily trips from home to the office and back.
-
Conduct an inventory. If there are leftover goods and consumables in warehouses, this is a reason to cut purchases.
-
Try converting some of your fixed expenses into variable ones. For example, sometimes it might be appropriate to switch to paying a percentage of revenue instead of a salary.
-
Avoid new commitments. It is better to postpone staff expansion, large purchases and issuing loans. And if it does not work out, calculate the associated risks three times.
Once you have sorted out the company’s expenses, talk to suppliers about softening the price list or working on a barter basis. Remember that hard times are not only yours. It is possible that they will meet you halfway, because losing regular customers is not profitable for anyone now.
2. Don’t be afraid of new business models
A crisis is a test of resilience for entrepreneurs. To stand on your feet more firmly, it is useful to have additional points of support. Now it is important to take a closer look at the market and listen to customers to understand what they are worried about and anxious about.
In the future, demand for psychological consultations may increase, so private clinics should study the direction of online therapy. Travel agencies may be interested in “card tours” – semi-excursion trips for Visa and Mastercard cards to friendly countries. Retailers can turn to new consumer trends. Many have temporarily given up traveling and leisure outside the home, so it makes sense to re-profile on household goods and instead of thermal mugs for travel, offer convenient teapots and coffee systems for the home.
Those who have lost their reach and part of their audience in their usual social networks can take a closer look at new platforms. There is no universal solution to this issue: in each case, you need to choose a platform based on the specifics of your business. For example, those who were promoting online courses and services can think about a comeback on VKontakte – they are already preparing comfortable conditions for migrating bloggers and influencers. Representatives of the event industry have access to platforms for recruiting specialists and classifieds sites. And those who are engaged in the sale of goods should consider switching to marketplaces. Now this format is on the rise: in 2021, the share of such trading platforms among all online purchases increased from 49% to 62%. Marketplaces will help you find customers all over the country, and starting sales here is easier and faster than launching your own online store.
3. Consider switching from automatic to manual
In good times, comfortable automation of most processes is quite appropriate, but in a tense period, it is worth considering switching to manual control. This will help save on small things and feel the mood of the team.
Analyze metrics, check indicators and try to stay informed about all processes. Arrange regular meetings with department heads and collect feedback on what is happening at different stages of production and sales. Conduct joint brainstorming sessions with the team – the more opinions you can hear, the more chances you have to find successful solutions. Sensitive leadership now will not only support employees, but will also allow you to collect more details into the overall picture of things.
4. Explore the vacated niches
Foreign brands are leaving the market, which means that there will be many vacancies in the economic chain. Thus, the departure of some car brands may increase interest in the offers of auto repair shops and spare parts stores. Popular clothing stores have also closed their doors to customers – take a closer look at customization startups, second-hand stores and Russian fashion manufacturers. There is a chance that they now need suppliers, marketers and other specialists. Perhaps the demand for services of home appliance, electronics and accessories repair services will also increase. Even if you do not directly provide such services, it is worth thinking about how to enter promising industries.
Entertainment can also become a profitable niche. For example, console rental services with a large game library have a chance to win the people’s love. And the closure of large furniture stores can push buyers to look for inexpensive handmade items.
5. Don’t forget to take care of your employees
Cutting costs by laying off employees is an extreme measure. If you reduce staff, the remaining employees may face burnout. The level of positive motivation will fall, but stress will increase. To give subordinates confidence in the future, reduce anxiety and support the desire to work for results, show care and understanding.
Try to maintain empathy and have your HR department regularly monitor the mood within the company. If serious difficulties and concerns arise, there is no point in giving false hope, but try to communicate bad news carefully and with extreme tact.
To avoid losing employees, consider internal retraining programs or redistributing job responsibilities. This will not only help you keep your team, but also make it stronger.
6. Pay attention to your customers – it’s not easy for them either
Regular customers are the most valuable resource during times of chaos and unclear forecasts. If it is difficult to attract new customers, it is important to retain those who already trust you. Organize small promotions, announce discounts, introduce loyalty bonus programs if you do not have them yet. You can hold a series of weekly giveaways for subscriptions to new social networks or come up with cute gifts-souvenirs for orders.
If you have a blog, write that you value your regular customers, tell them how your business is doing, organize games and interactive activities in the comments. Now many subscribers may have a request for more personal and engaging content. A company that shows attention and care to customers can win the loyalty race.
Simple attention to detail can increase conversions more noticeably than some big decisions:
-
Build a business trigger map. Find out at what stages of interaction with the site or marketplace showcase your client leaves without a product.
-
Develop a system for responding to abandoned purchases. Mailings reminding customers that there are items waiting for them in their shopping cart will help attract their attention.
-
Encourage the customer to take action. Introduce personalized recommendations with similar items for the “Item Out of Stock” scenario, create promo codes, and implement a price reduction system for “abandoned” carts.
7. Believe in yourself, but consider the worst-case scenario.
Panic during an economic storm increases the chances of collapse, but excessive optimism is also dangerous. A balance is needed: remember that a crisis is a great opportunity to find new growth points and “clean up” expenses, but at the same time keep in mind the possible risks.
Build a “crash model”: describe the worst-case scenario and analyze what could lead to it. A visual graph with revenue reaction to various actions will help you find support and notice even a slight drop in key metrics in time.
In case the negative scenario does come true, it is worth creating a “safety cushion”. When the approximate amount that can compensate for the worst-case scenario is clear, create a schedule of savings for your insurance. A clear rescue plan will give you confidence in unstable times.