Economic slowdowns can be the business owner’s worst nightmare. Imagine sales that are slowing down, and you don’t have enough to pay your bills or your employees. Many business owners will no doubt worry about the future of their business, especially if it is small and caters to a very niche market.

Not everything has to be dark and gloomy as many businesses have proven that it is more than possible to survive an economic downturn. In fact, some businesses even thrive in these difficult times. What is their strategy for survival? Here are some of the most common ways businesses pull through.

Diversify



Diversification of your business simply means to offer different products or services so that you can reach a wider customer base. A wider variety of products and services also means that if the demand for one product falters, you will always have others to back it up.

Reduce Operational Costs



Although reducing operational costs is a difficult decision, it really is necessary for your business to survive. One of the methods you can employ is to cut down on waste. You may need to reduce your packaging costs, and cut down on employee overtime payments. If your business is desperate, you may even need to cut down on some staff. Although this appears to be cruel, it is beneficial in the long term for your business, and much better than having to suffer from bankruptcy.

Spend on Advertising



Any leftovers you can spare should be spent trying to push for sales by making sure you are seen by the masses. Nowadays, with social media, you don’t have to spend too much to make yourself visible. Look for cost effective ways so that more people see you in the virtual world through twitter, Facebook and other sites.

Keep Existing Customers



One of the key strategies you should practice is to ensure you do not lose any of your current clients. In order to do this, make sure you provide the best customer service possible. Try meeting your clients on a one to one basis and re-negotiate deals if necessary. Do all you can to compromise so that the business relationship is maintained, even though the current sales may be down.

Be Alert



Be on your toes for any new business opportunity and any new clients. Do not miss any calls and make sure you follow up on any potential and interested clients. Make sure your sales team is on their best behavior and train them to speak with impeccable English and manners. This will impress people and help you clinch that sales target.

Spend Wisely



This includes not spending on any capital expenditure like buying a new building or vehicle. You should also reduce working capital by collecting any outstanding debts as soon as possible and paying back what loans you can. In desperate times, consider refinancing parts of your business to keep the cash flow running.