The Nigerian government in 2018 announced that the country has fully exited recession.
The development, the government said, followed the reports by the National Bureau of Statistics (NBS) on the nation’s Gross Domestic Product (GDP) and other related economic performance numbers.
However, the economy is still not strong as Nigerians will want it to be. Nigeria’s economy grew 1.9% in 2018, the NBS said.
The NBS said gross domestic product also rose by 2.38% in the fourth quarter of 2018 compared to the same quarter in 2017. Growth accelerated from the 1.81% expansion in the third quarter.
Nevertheless, small businesses are still struggling to sail through the tough economic times, facing such issues as finance, declines in consumer confidence and decreased sales, high interest rates, etc.
In this piece, Legit.ng lists seven ways to make your business thrive in tough economic times.
1. Protect your cash flow
Cash flow keeps your small business alive and healthy. It needs to continue flowing through if your business. So, make sure you implement strategies to keep the cash flow moving.
2. Focus on core competencies
Diversification is good, but only when you are sure your business has stabilised and you are ready to take on more risks. As a small business owner, focus on your core competencies rather than adding more products/services that can damage your core business.
Focusing on too many things can take your time and money away from your core comptencies and damage your brand and reputation. Focus on what you do best that is most profitable.
2. Review your production costs
You can review your expenses on production by cutting down what is not essential. This does not, however, mean that you should compromise your standard and quality.
4. Develop and implement strategies to win the competition's customers
To survive the tough times, your your customer/client base must be constantly expanding. To achieve this, study your competitors and come up with effective strategies that can make their customers prefer your product/service.
5. Retain your current customers and clients
Build a loyal customers/clients base. As you try to gain new customers, always have incentives to keep your customers out of the reach of your competitors.
6. Consistent marketing
Though the times are tough, don't make the mistake of cutting your marketing budget to the bone or even eliminating it entirely. Tough times are exactly the times your small business most needs marketing.
7. Maintain good credit/debt profile
As small businesses are finding it difficult to get loans or funding from investors, what can make you have access to the limited funding is your credit/debt profile. With a good credit/debt profile, you will stand a much better chance of being able to borrow the money needed to keep your business afloat if you need to.
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