{"id":7077,"date":"2020-06-24T00:26:01","date_gmt":"2020-06-24T04:26:01","guid":{"rendered":"https:\/\/www.sage.com\/en-ca\/blog\/?p=7077"},"modified":"2026-01-16T05:18:54","modified_gmt":"2026-01-16T10:18:54","slug":"business-growth-recession","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-ca\/blog\/business-growth-recession\/","title":{"rendered":"Plan for business growth during and after a recession"},"content":{"rendered":"
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\n\t\t\t\t\t\t\tGrowth & Customers<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t
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\n\t\t\t\t\t\tPlan for business growth during and after a recession\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t

\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t\t

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\n\t\t\t\n\t\t\t\t\"\"\t\t\t\tOwen Sweeney<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n\n\n

When the economy is in the doldrums, it\u2019s a natural instinct to assume a defensive position and take steps like managing your cash flow<\/a> to keep your business moving. But while the idea may be counter intuitive, it\u2019s equally important to plan for business growth during and after a recession.<\/p>\n\n\n\n

Why?<\/p>\n\n\n\n

First, it\u2019s always important to be thinking about how to grow your business\u2014even when it isn\u2019t growing. The world never stands still, and if you become complacent, odds are you\u2019ll be left behind.<\/p>\n\n\n\n

Second, in a challenging business environment, you can \u201cgrow\u201d just by staying even, if your competitors are sliding backwards. There are more ways to measure your growth than an increase in gross revenue. Other ways include increasing market share and building your customer base, even if their purchases are modest today. Such growth metrics may be even more important in the long run than your current gross revenue trend.<\/p>\n\n\n\n

And third, sooner or later, the economy will turn around. Unfortunately, you can\u2019t mark your calendar yet for that date. But when it arrives, change could come very rapidly. Recall that the first of Steven Covey\u2019s famous \u201cseven habits of highly effective people<\/a>\u201d is to be proactive. Preparing now to capitalize on a turnaround will be well worth the effort.<\/p>\n\n\n\n

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Small Business Survival Toolkit<\/h2>\n\n\t\t\t\t\t\t\t\t\t
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A practical guide with easy to use templates to help your new business start, survive and thrive.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\tGet your Small Business Survival Toolkit<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t

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Ten steps to plan for growth<\/h2>\n\n\n\n

How can you do it? While some steps will depend upon your unique circumstances, a few general principles apply in most situations. Here are ten:<\/p>\n\n\n\n

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  1. Product and service modifications.<\/strong> Think about the circumstances that caused today\u2019s economic difficulties\u2014primary the inability of people to go out and engage in commerce in the traditional ways, and job losses causing a drop in consumer confidence and purchasing power. Even when things begin to turn around, it\u2019s likely there will be a \u201cnew normal\u201d with regard to consumer demand for some products and services. Does your vision of a new normal suggest changes you\u2019ll need to make to thrive?<\/li>\n\n\n\n
  2. Review and possibly reinvent your market strategy.<\/strong> Whether or not you plan to modify your product or service offerings, you might need to get customers\u2019 and prospects\u2019 attention in new ways. For example, if many of your customers are likely to be more frugal as they seek to protect or rebuild their savings, stressing a product\u2019s value and durability might resonate better than an emphasis on how contemporary a product\u2019s style is. Or if your customers have become more attuned to the importance of maintaining good health to endure a viral epidemic, a health-themed marketing outreach might be a better way to increase sales.<\/li>\n\n\n\n
  3. Stay close to your customers. <\/strong>Instead of relying exclusively on your own ability to anticipate what your customers will be looking for next or the best marketing strategy to reach them, pull them into the process. \u201cThem\u201d should include both current customers, and those who have been missing in action. Perhaps a customer \u201cadvisory board\u201d would be a good way to establish a formal process for seeking input, and also flatter customers enough for them to agree to share their ideas.<\/li>\n\n\n\n
  4. Exploit <\/strong>CRM software<\/strong>. <\/strong>If you haven\u2019t already taken full advantage of the power of a good customer relationship management (CRM)<\/a> application, now may be the ideal time to do so. The longer you use it, the more insights you can gain about your customers, their purchasing behavior, and their status in your sales pipeline. It can also help you evaluate past marketing tactics, and the best ways to stay close to customers.<\/li>\n\n\n\n
  5. Research new customer categories. <\/strong>When you plan for business growth during and after a recession<\/strong>, there\u2019s no substitute for researching new markets. Are there any you have considered trying to penetrate, but never taken the time to explore? There\u2019s no time like the present\u2026 particularly at a time you may need to tap new markets to grow.<\/li>\n<\/ol>\n\n\n\n

    Optimize Your IT Infrastructure<\/h2>\n\n\n\n
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    1. Optimize your IT infrastructure. <\/strong>Beyond exploiting CRM, plan for growth by ensuring that you have strong enough IT systems in place to accommodate expansion. Those include a new accounting software system with cloud-connections<\/a>, time and billing software, and inventory management tools.<\/li>\n\n\n\n
    2. Secure access to credit. <\/strong>If you are like most business owners, particularly today, you may not have a deep enough reserve to finance the kind of investment you\u2019d need to make quickly to accommodate rapid growth. Whether you\u2019ll need to quickly restock your inventory, buy more production equipment or beef up your workforce, you\u2019ll need financing. A bank probably won\u2019t extend you a lot of credit when business is slow, unless you have great collateral. Rather than starting from scratch with when you look less risky to a potential lender, start having that conversation now to work out their terms in order to get the cash you need when the time comes.<\/li>\n\n\n\n
    3. Start scouting talent.<\/strong> As with borrowing, hiring might not be the right move for you today. However, recall the \u201cwar for talent\u201d that only recently cooled. When the opportunity for growth presents itself, have some strong potential recruits poised and ready to join your enterprise. Whether such people are currently unemployed or working for another company, they rarely will object to your staying in touch with them before you\u2019re ready to make them an offer.<\/li>\n\n\n\n
    4. Keep an eye on your competitors.<\/strong> They might also be gearing up for growth, and possibly giving hints of their next moves. Their plans could include making a run at your best customers. It\u2019s hard to launch a growth strategy if you have to start by fending off a competitor\u2019s offensive.<\/li>\n\n\n\n
    5. On your mark, get set, go!<\/strong> The perfect opportunity for business growth is not always obvious. You might face your greatest adversities right before things work out. Whether it\u2019s a new product or better service suited to the times, or launching a drive into a new market, getting ahead of yourself is always a possibility. But the problem could be worse if a competitor jumps in first, and builds a commanding lead.<\/li>\n<\/ol>\n\n\n\n

      Planning for growth can have an intangible benefit as well. It keeps you mindful of the prospect of better times ahead. That bit of encouragement can give you an added motivational boost to be ready to resume your path to success.<\/p>\n\n\n\n

       <\/p>\n\n\n\n

      Editor\u2019s note: We\u2019re here to help. Visit our coronavirus (COVID-19) hub<\/a> to access the latest information and advice to prepare and support your business.<\/em><\/strong><\/p>\n\n\n\n

       <\/p>\n\n\n\n\n\n

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