Lifebuoys to Save Your Business During a Crisis

[subornaakter24]

How can a business survive a crisis? First of all, it is important to understand that it will not be possible to bear expenses in the same volume. It is necessary to identify only a few main areas of expenses, and cut or stop financing the rest. To do this, expenses must first be classified.

In order not to delve into complex economic terminology, we will use the popular classification of expenses by Bob Fifer. According to this author, all expenses are divided into strategic medical insurance leads email list and non-strategic.

Read also!

"Business Strategy: Types and Rules of Development"
Read more
Strategic expenses are those that are incurred in order to generate new income. First of all, these are marketing costs (advertising, customer acquisition, etc.).

Non-strategic expenses are costs necessary to ensure the company's operations that do not directly generate income. For example, this includes purchasing materials, renting premises, equipping workplaces, etc.

Many people now think that all these expenses are very important and it is impossible to refuse them. However, we can assure you that it is not only possible, but even necessary to stay afloat during the crisis.

If you agree that expenses will have to be cut, then you may already be thinking about cutting strategic expenses.

Attitude to money

Source: shutterstock.com

At first glance, it seems that they are the ones that need to be abandoned in a difficult economic situation. But in reality, everything is not so simple.

Let's look at 4 main areas of business that need to be financed even during a crisis, so as not to lose everything:

Marketing

To refuse advertising expenses means to bury your business forever. You will not immediately notice negative changes. The first few months, sales will remain almost at the same level. It will seem to you that marketing expenses are not necessary at all. But sooner or later, the moment will come when there will be fewer and fewer clients until the business becomes unprofitable. The decline will be in all areas. Only the blame for it will not be on the global economic crisis, but on the recent refusal to advertise.

Advertising is essential for business. How else will potential customers learn about your offers and promotions? Don't count on someone specifically searching for and researching your site. It's much easier to take advantage of a competitor's offer.

If you are currently incurring too much marketing costs, analyze all the promotion channels you use. Most likely, they have different efficiency, i.e., they bring different profits. Give up those areas that do not bring additional income and are needed only to maintain the image. The most relevant thing is to move all advertising to the online sphere.

You should invest no more than 7-8% of your total revenue in advertising if you want to survive the crisis, and no less than 10-12% if you need to quickly gain momentum.

Interacting with old clients
During a downturn in the economy, it becomes more difficult to attract new customers, so it is better to focus on retaining old ones. Use various marketing tools: email newsletters, individual conditions, unprecedented promotions.