Mauricio Rosero is the founder and CEO of M2 Studios.
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Keeping a business up and running can be very demanding. More so, keeping this company afloat in times of severe economic hardship is especially difficult. Unfortunately, in many cases, entrepreneurs need more time to prepare for these situations. Many entrepreneurs are ill-prepared, with little or no ideas on how to navigate the tide of global change affecting their businesses.
With all the signs in the world, it’s safe to say that businesses are going through a lot of uncertainty right now. Rising costs running businesses, high inflation rate and other changes over the past few years have made running a business difficult. Of course, no entrepreneur wants this to happen, but it’s important to note that preparing for uncertainty and challenges is crucial.
Carry out a marketing audit.
In times of economic downturn, I have found that those who understand what needs to be done emerge victorious. First, I suggest evaluating all of the marketing platforms and strategies you’ve used as a business owner. During a marketing audit, business leaders should consider a variety of factors, including:
1. Marketing Environment: Examine the macroeconomic, demographic, cultural, technological, and competitive forces that may affect the company’s marketing efforts.
2. Objectives: Review the company’s marketing objectives and target market to ensure they are clear and aligned with the company’s overall business goals.
3. The company’s marketing mix: Examine the company’s products, prices, promotions and placement strategies to determine if they are effectively reaching the target market.
4. The company’s marketing organization: review the structure, roles and responsibilities of the marketing team to ensure they are aligned with the company’s marketing goals and are capable of executing marketing activities effectively.
5. Budget: Review the allocation of marketing resources, including advertising, promotion, and research and development, to ensure they are aligned with the company’s marketing goals and target market.
6. Performance: Analyze company marketing metrics, such as market share, customer satisfaction, and sales, to determine if the company is meeting its marketing goals.
During this evaluation, identify the most effective systems and duplicate them; then reduce unnecessary or inefficient items to reduce costs. Identify the return on investment (ROI) you get from your marketing systems. If the numbers don’t match or need to be more convincing, now is a good time to save some money and stop using these platforms.
By reviewing these factors, business leaders can identify any issues or opportunities and develop an action plan to improve the company’s marketing performance.
Reposition your brand.
Repositioning your business means changing strategy to ensure you are ready for the future. A business may choose to reposition its brand by changing its products or services. Likewise, you can change your marketing tactics and restore your brand values. You can even change your image to appeal to a wider market.
To change their marketing tactics and reestablish new brand values, business leaders can follow these steps:
1. Define new brand values and align them with the company’s overall business goals.
2. Communicate new brand values to internal and external stakeholders and update marketing materials accordingly.
3. Align marketing tactics with new brand values and target market.
4. Monitor and measure the impact of new brand values on key metrics.
Challenges that business leaders may face when changing their brand values or image include employee resistance, misalignment with company culture, and loss of customer loyalty. To overcome these challenges, I suggest business leaders communicate the benefits of new brand values to employees, engage with stakeholders to gather feedback, monitor and measure the impact of new brand values and to foster a culture of continuous improvement and innovation.
Focus on growth.
When preparing for a recession, I have found it can be helpful to focus exclusively on what drives growth. It can also allow you to expand your market share and ensure that you will have more opportunities when the economy recovers. The key is to focus on growing areas where you have a competitive advantage.
Some companies focus on the quality of their products or services, hoping that consumers will buy them during a recession. Others seek to offer new and improved products or services. Finally, many companies focus on retaining existing customers. They do this by enhancing the relationship they already have with buyers. However, not all businesses can afford these growth strategies on their own. Think about what works best for your business.
These tips can help businesses prepare for and survive an economic downturn. They can be applied to all businesses: micro, small and medium-sized businesses. Remember that proper preparation is a requirement for the continuity and profitability of a business venture. Whether or not we are in a recession, we hope this information can give you an edge over your competition.
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