Recession Proof your Dealership with These 5 Tips!
There has been a lot of discussion about a recession being on the horizon, and with inflation rates at an all-time high, it’s understandable to be worried. Recessions can be devastating, and many businesses never recover from the financial loss. So how can you make sure that your business makes it, regardless of the state of the economy?
Lead by Example
As the leaders within your organization, you can stabilize your work environment and maintain health and balance within the workplace. You do this by leading by example. Show your employees that you are all on one team. And lastly, cut costs where you can but don’t sacrifice quality or your employees’ livelihoods. Your morale will be easier to maintain, and you will have a greater capability of responding to crisis. People want to do business with those they know, like and trust. By ensuring customer excellence is achieved in all interactions, you increase the likelihood of creating a loyal customer. Trust becomes even more important at economic downturns occur.
Promoting your business during an economic recession might seem counterintuitive, but it’s actually essential to surviving tough times. To be successful, you’ll need to be tactical in your approach. The best way to reach your customers is by meeting them where they are – whether that’s online, in-person, or through word-of-mouth. Hyper targeted marketing is a low-cost way to reach your consumers. A few ways to utilize targeted marketing are listed below:
- Content: Good content is essential for SEO success, and it’s also key to attracting organic traffic to your website. When creating content, make sure it’s high-quality and targeted to your audience. Relevant content will not only help you rank higher in search engines, but it will also attract more organic traffic to your website.
- Social Media: While, like most things, you can spend money on social media. It is not necessary. You can achieve the basics of social media without spending a cent. When it comes to social media, you get what you put in.
- SEO: SEO has the highest potential for value per dollar of any other marketing effort. The successes of good SEO will stick with your site, long after you stop paying for services. No matter how long you have been in business, your website can always benefit from an SEO update. SEO is a crucial part of being seen by your customers.
- User Experience & Website Design: Existing in the digital world is an essential part of being a business today. The success (or failure) of your online efforts can often be determined by the appearance and usefulness of your site.
Talk to your partners and suppliers now. Do not be surprised by supply chain or staffing shortages. Be aware of trends for your industry and allow yourself to anticipate not only business needs but also the needs of your ideal customers. There is a good chance that other companies in your industry are dealing with the same obstacles, so communication with suppliers and customers is not only crucial but can be game changing. You want everyone on your team to be on the same page. This can help you to identify pitfalls before they even happen.
Think Twice About Big Investments
It becomes even more important to manage your cash flow when you are in the throes of a recession. Looking at your finances and projections can help you anticipate where cash flow might get a little tight so you can prepare solutions and adjust ahead of time. Do everything you can now to evaluate your operations and trim the fat to strengthen your cash position prior to entering into a recession.
Stay on Top of Accounts Receivables
During a recession, everyone struggles financially. Your customers may start paying more slowly and you may have a more difficult time collecting receivables. Evaluate your customers paying habits and make adjustments now, to save you lots of time and headaches later. Stay on top of collections. Offer additional ways for clients to pay: such as, electronic payments. You can also stop working with clients who are reluctant to pay or stop extending credit if your cash flow can’t withstand it.
There is nothing you can do to control the economy. It is important to focus your attention on what you can control, and that is how you run your business! A recession will bring countless struggles and challenges for your company. Knowing your numbers and leaning into smart changes will help you to lead your company with a fearless growth mindset and allow you to overcome and emerge a leader in your industry.
If you find that you don’t have the time or expertise to handle your dealership’s marketing, we can help! Dealers Digital has a proven track record of helping Outdoor Power Equipment Dealerships maximize their online reach. With over 20 years of digital marketing experience, we know your market and we know how to reach your customers! Contact Us for more information about how we can help your Dealership turn those clicks into cash!