Singapore is facing sluggish GDP growth in the last few years. Although it puts added pressure on entrepreneurs to sustain their business growth in such uncertain times, the prospects of survival for small businesses may be least affected, if they adopt some tactics to overcome the situation.
Singapore’s startup ecosystem has encouraged many budding entrepreneurs to dive into company incorporation in Singapore. As a small business, you have an added advantage when it comes to strategic shifts in business objectives in such financial turbulence, and this is where you need to leverage on this to keep your business afloat. Here we list down a few steps that you may undertake to sustain and thrive in an uncertain economy:
Re-evaluate your business:
Smaller business will find it slightly easier to change the plan of actions. Review your initial business plan that you drafted prior to setting up the company and identify areas where your business is lagging behind. Conducting a detailed SWOT analysis will not only highlight your company’s strengths and weaknesses but look at your potential market and if there is demand for your company’s products and services. Once you’ve identified this areas for improvements, make the necessary changes to your business plans and strategies as per the market conditions.
Concentrate on your cashflow:
Is it important that small business owner account for their cashflow and ensure that every expense incurred is due to immediate benefit or need. Such transactions needs to be recorded and receipts or invoices filed for future reference.
If you are unsure, consider engaging a professional accounting and book-keeping service. Outsourcing this function will greatly allow you to focus on other key revenue generating activities whilst having your accounting and book-keeping needs will looked after. Most management consulting companies with Singapore company incorporation offer accounting services or packages that fit any budget.
Grow and diversify your customer-base:
Explore the possibility of cross-selling your products or services to your current clients. Retaining your existing clients cost much lesser than acquiring new ones. Alternatively, look at it from another perspective such as improving client care services through harnessing technology, and pay attention to your clients to build trust and maintain close business relations. Loyal clients tend to be more relationship-driven and less likely to be price sensitive. Think out-of-the-box and try to expand your reach to a wider client-base and keep them satisfied.
Sustain your marketing strategy:
Naturally in times like these, companies steer away from blowing their budget on marketing expenditure and advertising. However studies have shown that businesses that maintain or increase advertising budget even during the economic slowdown end-up taking a share of the rival who cut back on their marketing spend.
You may consider boosting sales even if the market is down by focusing on direct-response advertising technique such as coupons and rebates, but be careful to stay away from appearing too gimmicky.
Embark on social media marketing:
Social media is prevalent in today’s marketing context. It has revolutionised the concept of marketing, and together with word of mouth, it is almost quintessential for any business to reach out to your targeted audience and build the brand image.
Leverage on social sites such as Facebook, LinkedIn, Instagram and other influential networks to kick-start conversations with your audience. Rule of thumb is to choose the social media platform that works best to meet your business objectives. Not all social media platforms are suitable for all types of businesses.
Another angle to look at is within the lifeblood of your business, these are your staff. Foster positive attitude and encourage exchanging of ideas to boost productivity. Small business owners must have the initiative to leverage on any available opportunity even in such economic turmoil and establish solid foundations for tomorrow’s profits.