Small Business Survival Guide: how to survive and thrive
As the world faces economic turmoil and a cost of living crisis, everyone is feeling the squeeze on their finances. The Office for Budget Responsibility (OBR) forecasts that unemployment could reach 1.6 million by 2025. Living standards could also fall 3.5% lower in 2024–25 than pre-pandemic times.
Small and micro-business owners are among the hardest hit, with soaring energy costs, relentless inflation, and unpredictable supply chain issues making it tough. Despite all the uncertainty, it’s possible not only to survive this economic turbulence but also to thrive.
This guide is for small and micro-business owners in trades, retail, services, and more. Here are some straightforward steps that can help you not only get through these challenging times but also come out stronger.
Embrace the Internet
Most successful businesses today owe a large part of their success to the digital tools at their disposal. Set up shop online, boost your online presence, and connect with your customers via social media. By mastering the basics of digital marketing, you’ll build your brand, drive sales, and meaningfully engage with customers.
Mix it up
While you might find a specific product or service that works well and is booming for a time, it’s smart to offer a range, especially in turbulent economic periods. By offering a range of products or services, you’ll be protected when things get bumpy while opening your business to a broader audience. Customers will appreciate diversity, and you’ll likely be rewarded with growth.
Become a negotiation master
With high costs affecting your business and profit margins from all sources, an uncomfortable but essential skill to hone is your negotiation skills. Renegotiate better deals with your existing suppliers, don’t be afraid to look for new suppliers, and seek out bargains and bulk discounts. Most importantly, make every penny count.
(Existing) customer is king
While it should always be an aim to grow your business, this can’t be done without a solid foundation. Reward your existing customers with loyalty programs, special discounts, and exceptional customer service. Customers will appreciate being rewarded, particularly during the cost of living crisis. In return, you’ll build a loyal base who’ll help foster natural growth through positive reviews and recommendations.
Invest in your team
Your team, and their skills, are the most integral part of your business arsenal. Invest in skilling up your team via training programs, workshops, and online courses. By boosting their expertise and adaptability this will help them do their jobs even better. They’ll also feel valued and engaged, meaning higher retention.
Save power, save money
With the average energy bill for a small business reaching £9273.00 in 2023, you can combat these rocketing costs by making sure your business is as energy-efficient as it can be. Energy audits highlight where consumption can be reduced, shop around for energy tariff deals, upgrade your appliances, and even consider sources like solar power.
Do your market research
In volatile times it’s more important than ever to keep informed and up to date with market trends. A profitable business is an adaptable one. Monitoring customer behaviours, industry advancements, and your competitors provides an invaluable edge.
Don’t be afraid to collaborate
In times of economic strife, there is little to be gained in going it alone, especially for small and micro businesses. Join forces with other like-minded businesses, pooling resources, marketing, and even ideas to achieve a collective aim that benefits all.
Take the Opportunity
Rather than despair at the cost of living and economic difficulties, consider instead an opportunity to steer through these challenges. Although small businesses are affected more than most by the uncertainty that economic turbulence brings, they also can regroup, adapt, innovate, and flourish.
By following the strategies in this survival guide, let’s look at building a future where our small and micro-businesses not only survive the current hardships but thrive.
