Economic downturns can take a significant toll on the average small business. You might be faced with the prospect of letting staff go or even closing your doors for good. These are scenarios that can be challenging to imagine.

However, you have many options before it gets to that point. When your business is facing financial turmoil, you may be able to keep it afloat by taking these actions:

Downsizing Your Premises

Office space is easily among a business’s biggest operational costs. Consider whether you can save money by downsizing, exploring shared offices, or researching virtual offices. Some of the best virtual office features include reception services, mail forwarding, hot desking facilities, and meeting room access.

Transitioning your team to a remote work style where you no longer have to provide office space for them might mean your business saves tens of thousands of dollars annually. What’s more, the very best virtual office features mean your clients don’t even have to know you no longer have a physical workspace.

Negotiating with Suppliers

Your current payment terms and prices with suppliers are not necessarily the best they can offer. You may be able to negotiate a wider payment window or more favorable prices to ensure a bigger profit margin. You don’t know unless you ask.

If your current vendors aren’t willing to budge, you are free to seek better deals elsewhere to keep your business afloat.

Diversifying Your Offerings

Your products and services might have once been in hot demand, but there’s always a chance that can change. Technology, trends, and innovations can all mean that customers are looking for more than what you currently offer.

Start researching your target market to learn their likes and dislikes. You may then be able to diversify your offerings, bolster your client base, and become a more profitable business.

Focusing on Marketing

Spending money on marketing might seem counterproductive when you’re trying to save money. However, there’s potential for you to make a return on your investment. As of 2022, direct mail had a marketing ROI of 43%, followed by email and social media at 32% and 29%, respectively.

This can mean that investing $1,000 in direct mail might result in an additional $430 in your bank account. You also have many marketing options at your disposal, such as social media ads, Google ads, website SEO, and even influencer marketing. Explore different options, compare the results, and see which avenue proves the most lucrative.

Expanding Your Reach

Where you’re currently selling your products and services may no longer be the money-maker it used to be. While it can be essential to determine why that is, you can also focus your efforts on choosing new sales methods.

For example, businesses operating entirely from physical premises may like to start selling their goods online and investing in digital marketing. Those already selling in person and online may also want to explore consignment opportunities and even markets.

Increasing Your Prices

Inflation has been challenging for businesses to manage, with costs increasing exponentially. While you might want to absorb those cost increases rather than pass them on to your loyal customers, it’s not always in your best interests. Increasing your prices may mean your business can remain profitable.

You don’t always have to immediately resort to laying off employees or closing down your business in an economic downturn. You may be able to improve your financial situation by marketing your business, negotiating with suppliers, and diversifying your offerings. There’s still hope before you take drastic measures.