It seems no business is immune to the devastating impacts of COVID-19, that is of course with the exception of toilet paper production companies…
For many the thought of surviving during, and thriving after a recession can seem like nothing more than an optimistic and unattainable idea. It can be immensely helpful and motivating to know that many thriving businesses today once battled in the face of an economic crisis.
Keep reading to gain knowledge and inspiration from businesses who have survived and thrived in the face of economic collapse!
For many businesses the idea of surviving an economic crisis is a nightmare, even more so: the idea of starting a business in the midst of a crisis.
That’s exactly what Groupon did.
Launching in the middle of economic chaos, Groupon quickly grew to the multi-billion-dollar company we know today.
How did they do it? Knowing the environment and adapting.
During an economic crisis, disposable income is low and many consumers simply can’t afford the non-essential services they’ve come to love. By offering consumers deals and discounts on almost anything you can think of, Groupon was able to provide a financially viable solution for consumers. This in turn provided businesses with new interest and customers willing and able to support their products and services.
This win-win situation allowed Groupon to help consumers, businesses and themselves survive the recession.
Hunger: a universal problem that doesn’t go away during a recession.
When faced with a looming economic collapse, Domino’s decided to shake things up and differentiate themselves from their competitors by offering their customers a solution to the problem of hunger, in an affordable and time-efficient way.
They took a huge risk and spent millions of dollars on research to create a new signature pizza recipe and develop a marketing campaign to promote it.
This risk was met with great success and their sales and profits increased dramatically, allowing them to thrive during the recession.
Companies selling non-essential products and services arguably suffer the most during a recession.
Consumers disposable income is drastically cut and many consumers opt to forego spending their precious money on the newest and latest toys.
Understanding the failing economic climate in America at the time, Lego began expanding into the more stable economies of Asia and Europe. This decision was crucial to Lego’s success as they were able to tap into a market that was economically stable enough to support their products.
What you can learn from these businesses?
Explore new opportunities.
Understanding the social and economic climate is vital to surviving a recession. If your consumers are suffering, understand why and create new offers and services to help them. Finding a way to expand your audience to those unaffected by the crisis is also important.
Review your business model and offering, if something isn’t working: review and reinvent.
Create an alternative.
During an economic crisis, many consumers are left with no choice but to make cuts to non-essential products and services. If you can offer your consumers a more cost-efficient alternative with your services, you will increase your chances of staying relevant in their lives.
Extend a hand to those in need.
During an economic crisis almost all consumers and businesses are affected. Finding a way to help those suffering is mutually beneficial and can be the difference between surviving and collapsing during a crisis. Lowering prices, offering deals and providing new opportunities are examples of ways you can offer help during a recession.
If you feel like your business will not make it through the impending recession, get in touch with Insolvency Experts. With over 30 years of experience, we provide low cost company liquidation. Our free, no-obligation phone consultations are available to answer all your questions, outline all options that are available to you and execute the best solution for your company moving forward.
Call now 1300 767 525 and speak directly to an expert!