Small and Medium Business

Is Your Business Recession Free ?

Tips For Good Business Management

You didn’t come this far to only come this far

SEP 21, 2020

Good business management measures can make your business recession proof. Market contraction and expansions can happen anytime and we all well understand 2020. Does your business have what it takes to face the storm ?


VYSMO works with customers in many countries. I’ve been asking as the founder of a startup during interesting times on what it takes to build a business that shows continued growth. Having interactions with smart business owners, I realised that I needed to take many steps to adjust to pandemic’s recession.


This is not a situation of investing in the right assets at the right time hoping one day you could dilute these to recover losses. There’re many things you need to take into account.


1. Review your Organisation structure

As business grew for VYSMO in the first few months, I was yearning to build a bigger team and I did hire the smartest dudes in town to further expand. However being close to freelancers as a team, we soon realised the importance of outsourcing jobs to professionals.

Building a team which is more strategic and growth oriented and putting emphasis behind the 1 key driver for our growth – customer satisfaction. We built our marketplace algorithms with 1 single measure – customer satisfaction and the key element behind that was Trust. This is key to the foundation of good business management practice.

A freelancer on VYSMO.com would make a lot of money if his customers are satisfied and would struggle due to lack of customer orientation.

2. Put the right investment in technology

Strategic algorithms and adaptive technology are critical. 2020 has taught us to connect efficiently with tools remotely. The amount of webinars, emails , social media messages have drastically increased. One realises the power of data- Good valid customer data today well connected to CRM systems.

Even for a small fashion store or a restaurant – if you don’t have a communication system to make promotions or get orders online – you’re virtually closed during such times. This is not good business management.

Before an actual need arises, think about ways you can use technology to streamline your business. Maybe there’s a tool you could use to complete your projects for a lower cost or with less labor.It depends on your business and your service or product. Regardless, though, now is the time to invest in technology that gets your work done.

3. Business Development is critical in market contraction

When business is strong, many organisations ease off their futuristic business management and development plans setting themselves for failure. The same happens during a high market contraction. This is really the time to be strategic , connect with people, brainstorm and rebuild.

In Geoffrey Moore’s book Crossing the chasm, he interestingly states that organisations that invest in marketing in a tough economic situation, tend to come out as winners. The problem is that most organisations wait until their business performance is low before they try to find ideas to help the business. Instead, a plan needs to be created beforehand.




4. Refurbish your offers :

Have something that’s Next Gen Innovate ! an interesting thought from Geoffrey again : Sustaining innovations exists when the current business model is invested in keeping the innovation going. Whats important is disruptive innovation. It may not be disruptive to the world (since someone else in the world has developed a product in this way), but it is disruptive from the viewpoint of a business owner because they’ve never worked like this in the past. Businesses need to have something in their offer that’s next generation for better business management. Some part of their offering should be new. Maybe it’s putting the offering online for the very first time in your industry, or putting the offering on customers’ mobile phones before anyone else. Do something to make the offering novel.




5. Stay in Continuous Contact

For most businesses, 80% of your profits come from 20% of customers. If you haven’t yet done – Analyse and know your top customers – PERSONALLY. Your marketing and advertising shouldn’t focus on reaching out to new customers alone.Keep your business on their minds. You need marketing strategies that continuously nurture your relationship with your customers.Invest in a email marketing tool – for small businesses many tools are free for a few 100 emails a month. Integrate the tool to your website/subscribers.A common option, sending newsletters and e-blasts to your subscriber list on a regular basis. In some cases, direct mail is a successful choice too.Get in touch with a freelancer for email marketing who could do this in a professional way.


6. INVEST in Marketing : DON’T CUT MARKETING BUDGET COMPLETELY

When business is strong, many organisations ease off their futuristic business management and development plans setting themselves for failure. The same happens during a high market contraction. This is really the time to be strategic , connect with people, brainstorm and rebuild.

In Geoffrey Moore’s book Crossing the chasm, he interestingly states that organisations that invest in marketing in a tough economic situation, tend to come out as winners. The problem is that most organisations wait until their business performance is low before they try to find ideas to help the business. Instead, a plan needs to be created beforehand.

One of the most stupid mistakes organisations make is to cut your marketing budget when you’re in a recession. A downturn is a time when your marketing is most important because you need to bring in new business. Needless to say situations may arise that the marketing budget is reduced. To do this correctly, you should revisit past trends and performance. Cut campaigns which have not helped in the past is a good business management practice.

7. Keep a Running List of Expansion Ideas

Nobody can underestimate the need for having a immediate starting point for a fresh idea. We all know how many garment/fashion businesses shifted to the idea of making masks, chemical and pharma businesses manufactured sanitisers and stands during covid. Its difficult to predict future but the more ideas you have ready, the better. Start keeping an ongoing list of ways your business could adjust to the needs your customers have during a recession to have a starting point.

8. Build Up Your Credit

Make it easy to get an affordable loan in future. Nobody wants to lose control of business by borrowing money but to scale, you never know when you’re in need and the last thing you want is to reach the point of needing a loan, only to find that your credit is too low to get one.

9. Break your Jobs to micro jobs


Great things are not done by impulse, but by a series of small things brought together. To solve complex problems , best way is to simulate with a smaller substitute. Brittanica was the leading encyclopaedia and Jimmy wells came and disrupted it with Wikipedia – just by asking people to contribute something about a specific topic and they could write a few words free. When jobs become simpler, they’re easy to quality control, integrate and outsource. Eventually bring a few of them together and innovate to create new ways to amaze your customers. This is good business management practice.


Send me your thoughts and call me in case you need any of us at VYSMO.com to help your business grow fast. We’ll be glad to help you connect to the right professionals if need be. Write to us at freelancer@vysmo.com .

Puneet Chadha

CEO-Vysmo