Recessions are an inevitable part of business. As long as a nation’s economy keeps fluctuating between inevitable periods of expansion and contraction, business owners should expect them.
Since you have no control over the economy, the safest route is to financially prepare your business for economic downturns as they happen. So it can survive the next recession, and the one after that.
But how can a business bounce back from times of economic downturn?
And, in case of a recession, how can it keep thriving in the midst of uncertainty?
One of the most promising ways to do that is by creating additional revenue streams.
Additional Revenue Streams Can Keep Businesses Afloat During Challenging Periods
An additional revenue stream could be complementary to your existing products or services. Or, it could be something entirely new (as long as it’s closely related to your customers’ needs).
This strategy involves creating a new source of income by tapping into desirable offerings.
As an example, dentists could start offering branded oral care products along with their services. Content creators could offer hoodies, mugs, and other types of merchandise for their followers. Pastry shops could offer take-home kits for business meetings and birthday parties.
The list goes on. And every single business has something new to offer.
In this blog post, we’ll talk about how extra revenue streams to your business can be a great option at any time – recession or no recession.
Think About How You Can Harness Your Existing Products or Services
Is there any product or service that would work well alongside your existing offerings?
Could you create and monetise online courses based on your available services?
Could you bundle up your best-selling products and create a little care package?
If you have an open mind, there are plenty of choices to start with.
Granted, your options must be carefully considered. It’s easy to get carried away and swerve from your business’s core values and capabilities.
While you should have enough wiggle room, make sure you’re still leveraging what you do best. And, of course, ensure you’re still operating within your budget. This is table stakes – you shouldn’t venture into anything your budget won’t allow.
Do You See Any Opportunities to Pivot Your Offering?
In business, pivoting means adjusting your offerings to better suit your customers’ needs. You’ll do that by changing aspects of your products/services.
By doing so, you could suit a new market that would still be interested in what you have to offer.
For instance, people who prefer takeout food over eating in restaurants will still enjoy your food.
Yet, they’ll do it in different ways. When restaurants were closed at the height of COVID-19, several owners harnessed the opportunity to give their customers something delicious to cook at home.
So, how can you shift your offering to make it more attractive to customers and profitable to you? It all boils down to knowing your customers and solutions exceptionally well.
Ask yourself questions like:
What are your product’s strengths and weaknesses? How could you improve on them?
How do your current solutions compare to your competitors’ solutions? Have they pivoted as well?
What qualities or disadvantages separate your business from the competition?
Most importantly: can you offer something that’s unique to you?
Do You Have Any Interesting Feedback From Customers?
No business strategy will ever bring more value than talking to your customers. If you can’t talk to them for whatever reason, do your best to listen to what they’ve been saying.
Look at their comments on social media. Emails support chats. Testimonials.
Have they asked for a product or service that you didn’t offer previously? Have they told you that they’d love it if your product had a specific feature? Pay attention to those details.
If you see any recurring feedback, it may be time to implement it. Because, as you know, nurturing new customers is far easier (and cheaper) than trying to acquire potentially unaware prospects.
What’s more, it proves you’ve listened to them!
Pre-Sell Your Solutions
Loyal customers love having access to perks and early-bird discounts. Is this an offer you might consider?
If the answer is yes, you can focus on pre-selling new products or courses before they’re on the market. Not only can this limited-time offer bring you some early revenue, but it also works as social proof for potential customers. If you can pre-sell something, that usually means customers are interested in getting this offer as soon as possible.
No matter the size of your business, it should be equipped to handle inevitable economic downturns. Even if it quakes in the beginning, you can still be successful by bringing in different sources of revenue.
Lastly, do your best to reframe periods of crisis into growth opportunities. After all, if you play your cards right, even a recession could be a propellant.