7 Smart and Strategic business decision in recession (2)

3. Engage your network of family and friends

Nobody can be as invested in the success of your business as family and friends. The only other folks who are that invested are your employees, but you pay them to do that.

Depending on how amiable you are, your family and friends should end up being your first customers and product/service evangelists. Think about it. If you have family and friends “working” for free, that drastically reduces your customer acquisition cost. Which is something all entrepreneurs pray for daily.

So start calling in favours. Beg. Blackmail. Anything to get them onboard.

4. Use the free version. Always the free version

Use the free version of every software and service you need, for as long as you can. A lot of those services are designed to lure you in with the free versions, but sometimes, if you temper your expectations, the free version is all you really need.

5. Embrace the sharing economy

Why own 100% of something when all you need is 20% of it once in a while? For example, if you’re into agriculture, you’ll only need a tractor intermittently, not everyday. So there’s nothing stopping you and a few other farmers to pool together resources and purchasing a tractor. And then have a timetable of usage.

In such situations, regardless of the industry, sharing makes more economical sense than acquiring. Pooling resources together means more value for less the price. It also means shared risk, shared capital and ultimately, better business.

6. Hire interns and corps members for your repetitive tasks

Think of this as a knowledge for service exchange. You need more hands to handle your low level and intermediate tasks. Maybe even market ting. These are usually repetitive tasks that take your time but require no high-level decision making.

The interns and corps members, on the other hand, need the experience to be relevant in today’s labour market.

Working together would benefit both parties.

That doesn’t mean you won’t pay them but you pay less. Note, cheap labour doesn’t mean slavery. Your leadership style and the kind of experience and learnings your interns acquire will determine if your interns feel like they got the shorter end of the stick. So do your due diligence and treat them right.

Side note: You’d be surprised how many people would be willing to work for free. 

I worked for peanuts at my first job and that job opened up the world to me.

7. Encourage advance payment from clients

Cash flow is important. Running out of cash can kill your business. So staying liquid is a priority.

That’s why leveraging on trust with customers and clients could be a lifesaver. Get them to pay in advance for your goods and services, and you’ll be having more cash at hand. Discounts are a good incentive to drive this action.

If your business operates on foreign exchange rates, highlight the fact that, them ordering early means they get to pay less. For all we know, the Naira could become N1000 to the dollar by next month. So, paying now means paying less, probably. And everyone likes a good deal.

If you have a great business idea, don’t let limited funds hold you back. Today, it’s easier than ever to start a company with less than what was needed in previous years. Many companies today are founded with little more than a laptop, a simple website and a registered domain name.

Post Credit: Buffr Space