The last edition of our community webinar was timely. Titled "Thriving in an Economic Downturn: How to Restrategize", the webinar was announced a few days before an upward review in the price of petroleum. The increase in the price of petroleum added another layer to the existing challenges of electricity tariff hikes, reduced sales, decreased consumer purchasing power, lower demand e.t.c already being faced by small businesses.
Read- Have we moved on? How Nigerian business owners are doing In today's economy
The agenda for the event hosted by Kippa's Director of Strategy and Operations, Omowunmi Adenuga-Taiwo was direct - What strategies can small businesses apply in today's challenging economy?
In response, Omowunmi's answer was "DIVERSIFY". We looked at four unique strategies to diversify and keep your small business afloat in an economic downturn. If you missed the event or want a quick reminder here are all four points.
Diversify your Outlook
This means thinking outside in vs inside out. Instead of relying on your own strategy and business objectives (inside out), you should focus on listening to your customers and understanding market needs (outside in). If your customers have been asking you to add specific services and products, then it is time to expand your products and services to cater to these new demands. For example, if you run a food business that focuses on grilled fish and chicken but customers keep requesting more side dishes, then it is a wise decision to start including more side dishes on your menu.
Diversify your Asset Use
Start thinking critically about the assets your business owns and how you can monetise them. From your business data, equipment, location and social platforms, you can find ways to get income from them.
Can you sublet a space in your location for a complementary business? Can you loan out your equipment to generate consistent income? Can you offer slots to run ads for complementary businesses? Start thinking about how your assets can create income for your business!
Diversify your Portfolio (range of products and services)
If you have built expertise in your business, then there is an opportunity to offer training and consultancy services. Organise training sessions or personalised sessions. This opens up an extra income source for you without a lot of capital required.
Diversify your business model (Servi-cizing)
Every small business has the opportunity to make more money by servi-cizing their business. This means transforming your business into a service that people can pay an upfront subscription for. For example, if your run a pharmacy and have customers who buy a specific product(s) every month, offer to lock in the price and supply these products for 6 months. This gives you bulk cash to grow your business.
If you enjoyed this recap and don't want to miss out on future events and opportunities, join the SME Connect By Kippa community to enjoy free business resources, events and verified funding opportunities.
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