5 Tips for surviving the recession as a business in Nigeria in 2017
Image Credit: StartUpTipsDaily
The government’s policies on exchange rate and importation have certainly impacted on a lot of Nigerian businesses. These have exacerbated the effect of the recession. It is even a difficult time to get help from them to sort out funds for your business especially small business owners/startups.
Having a business at this period can be pretty tough with the way the exchange rates have been steadily increasing over the past few months As a matter of fact, a lot of businesses have failed due to recession but this is not said to scare you as there are reasons why they tend to fail. Well not to worry, below are a few tips to follow to ensure survival and thrive as a business in this economy;
- Provide inexpensive or free services/products: Let’s take a look at Facebook, it is now probably the most popular website in the world and it definitely was once a startup company before the brand grew into what it is now. It went through recession as well in 2007 and one thing they are known for is their services which are inexpensive and mostly free and this helped throughout the recession period that they were in. Also Redbox (the DVD rental kiosk) offered inexpensive and free services.
- Brand Recognition: As a business your brand has to be very well built over the years as having a highly regarded brand built over the years helps your business survive in any situation. For instance; APPLE and NETFLIX. Despite the recession it is wise not to trade the quality you want your brand associated with to a watered down version just because you want to survive the recession. This is because if the brand loses its value it would not likely regain it when the economy revives. For a business, the brand value must never be diminished. So work on building your brand as a business. You can get some leverage here.
- Diversify your products: Don’t focus on just a particular product to grow your business, instead be versatile, include several other products to your list of product offerings, this in turn would generate more revenue and create more profit for your business.
- Collaborate with other businesses or companies to share costs: This can help the burden of having to do all the work alone. Sorting out expenses can be quite difficult and inconvenient. Partnering with other small business owners could solve that issue. You can invest in business tools to make running your business more efficient. Sign up for a free version of PrognoStore (the best point of sale and inventory management software for small businesses in Nigeria)
- Bargain with staff and workers on reduced wages: Recession in an economy is usually difficult and this can make businesses lay off as many workers as possible just to cut costs. But I suggest bargaining with these workers for reduced salaries are better than rendering them jobless. This may be controversial but it’s worth trying.
What do you think of these few tips? Do you have any more tips and advice that you would love to share? Please feel free to do so by putting it in the comments.
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