What is a recession? According to investopedia.com recession refers to a period of time where a widespread economic downturn happens significantly. This could happen on a national or international scale.
Rumor has it that in the year 2023, a global recession will be inevitable. This is of course concerning to everyone no matter where you are or what you do as a living. However, it is even more so for owners of small businesses.
With less budget and higher risks, this period will be a crucial time that could mend or break a small business. But if you know what to do, you can increase your chances of surviving the recession and even come out of it with a business that’s better than it was before!
So here, I have compiled a few things you might need to start doing to prep your business and keep your shop running in the middle of these tough times.
If your business has been going on for a while, then chances are you already know what products sell the best. I know it is always tempting to make your favorites but if your favorites don’t get you money then it might be best to set them aside for a while.
In a successful scenario, big risks can get you big rewards, however in a recession, this is very unlikely. So concentrating on making the products you are certain will make a revenue will be your safest bet.
This is one of the most obvious steps on the list, but you’ll be surprised at how many people underestimate it.
Take the time to sit down and check your budgets and where you actually spend them. When I say “check”, I mean “analyze and confirm”. Determine which expenses are directly affecting your income and which ones do not.
You might have to sacrifice the spacious office and opt for a smaller one to cut back on rent. Or reduce the production of your less-selling products. And little things like switching off LED signs when you’re not on office hours; small amounts add up!
It also would be wise to start cutting back now to anticipate when the recession begins.
Whether you need physical materials or digital designs to apply on your products, getting the right supplier is essential to help manage your business during a recession.
Do your research and compare the prices of the suppliers available to you. This list will come in handy if a price raise were to be applied by your original suppliers.
As for your design needs, Drizy Studio has an endless supply of affordable designs that you can use for quite literally anything. There are also bundles that you can purchase for as low as $15 for over 1,000 designs that you can use commercially.
Offers like these cut budget spending and increase your revenue big time. So check out more bundles and products here:
The thing is, a recession could affect everyone. And based on previous decades, the higher your income is, the less likely for the effects to be serious (and vice versa). It is important to know where your clients fall on this scale.
It goes without saying that people with more money have more to spare on non-essential items like accessories, statement clothes, and decorations. So depending on what you sell and who your customers are, you can predict how much the recession will affect your sales.
The recession causes different consequences for different people. If it is possible, you might need to consider expanding your price range—especially to the lower end.
Making products in different price ranges also expands your potential markets. It can support your business through the fluctuation of customers.
Also keep in mind that in the toughest times, affordable luxury is still something that people want. Emphasis on “affordable”. So, put yourself in your customers’ shoes, and make sure your products are worth what it costs.
You might also find providing your items in the form of bundled packages to be helpful. It cuts down on packaging and delivery fees that your customer needs to spend and you can sell more items in one go. Everyone wins!
This is something you definitely need to do if your main source of income is a crafts fair or other events that are similar. The recession can cause event organizers to reduce these types of events due to budget cuts. Also, fewer people would probably be coming anyway.
I don’t know about you but I definitely can’t just visit one store when I go shopping. Whether it’s just window-shopping or stopping to get something to eat—there’s always that extra spending that is actually not needed. That is exactly why a lot of people prefer to shop from home during times like these.
So if you rely on public events or an offline store for your revenue, you might need to start addressing and promoting your online marketplaces more if you haven’t already.
You should also make the best use of partnerships and discounts such as delivery fee deductions, that you can provide to your customers through vouchers or promotional codes.
Thus concludes my tips for you small business owners. With the global recession coming up, you might be scared or anxious. I mean, it’s kind of hard not to be, right? I’m here to assure you that you are not alone!
Come and join our “support group” of home crafters from all over the world! It’s on our Facebook Community! You can get many new friends, new knowledge regarding DIY crafts, how to run small businesses, and even exclusive free gifts from Drizy Studio!
A recession is part of the economy and subsequently, part of doing business. As the famous saying goes, after every storm comes the sun. Have faith that as long as you don’t give up, eventually life will return to it as we know it.
So hang in there, crafters! We can survive the crafts business recession!
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