The benefits of customer retention over customer acquisition are many and well-known. In preparation for a recession, it is important to put the majority of your company's efforts into retaining existing customers rather than acquiring new ones. You can even look for partnerships where you pull resources together to respond to changing customer needs with common solutions. Identify how the needs of customers are changing and what you can do to meet their new requirements.Īnother approach is to consult with your network to see what others in the industry are observing and what they plan to do about it. Implement a broad-scale survey complemented by a few detailed interviews and potentially even focus groups. As a resilient tech business determined to survive the recession, you should be on the lookout for new products that both your existing customers and new customers might need under the newly emerging economic circumstances.Ī proven strategy to achieve this is to turn to your existing customer base. While there might be a decline in interest in your products during an economic downturn, demand for other related products might go up. Look For New Products Within Your Expertise Having proper team buy-in is a leading factor for the success of this strategy. Once you have a multilayer business strategy, it is your responsibility as a tech leader to introduce it to your team to explain why this is necessary at the moment and to ensure that everyone is ready to do what is expected from them in either scenario. The pessimistic scenario needs to provide a full-scale strategy of how your startup will react in a situation where the bleakest forecasts materialize. The baseline scenario should detail your business goals and strategy if the market manages to retain the current state with slow growth. Within the current environment of a potential economic slowdown, rising inflation and increasing interest rates, you have to work out a business plan with different scenarios. However, this becomes extremely important as we head toward a possible recession. Have Clear Business GoalsĮnsuring that the company has clear, quantifiable high-level goals as well as an intelligible strategy on how to get there is one of the main responsibilities of the leader at all times. Having a team that is competent and committed could prove to be indispensable at times of crisis when your whole company needs to search together for creative solutions to exogenous challenges. This can be done through an internal mentorship program or external online courses. Offering your employees the opportunity to learn new skills and expand their horizons not only makes them more valuable to your tech company but also shows them that you see their potential and are willing to invest in building their capacity. You need to actively work toward building a team in which everyone has an expertise within their field while, at the same time, feeling like part of something bigger.Ĭontinuous on-the-job training and education are crucial in both regards, especially in technology, where new developments emerge daily. In this reality, preparing your company for a potential recession in 2023 starts with the team.
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