Few
weeks ago it was declared officially that Nigeria was in recession, and
like most people we either panicked, ignored it or sort to prayer and
fasting. Before all that did we bother to find out what recession really
is. Recession has generally accepted definition which is a period where economic activities slow down. That definition is so simple yet so confusing. The National Bureau of statistic came about their findings through 2 major ways
Threshold findings- A country can be defined as being in recession when the output falls below a certain benchmark or threshold. For example if the GDP has not grown with regards to the population growth with a pre-established time line e.g. if GDP grows 2% while population grows 3% then it is a threshold recession because the number of people eating(Population) the same bread(GDP) has increased and the bread has not.
GDP growth- A county can also be defined as being in a recession when the GDP falls two quarter in a row. This is the most common way and probably the method Nigerian Government used to arrive to the conclusion that we are in recession.
So how should we as employers and employee handle ourselves within this period, N/B every countries economy runs in circles, and it is not new, we have been in recession in time past, and the average recessions always last for 3yrs. So going by the trends it is safe to say that the recession will last till 2018 minimum.
So how then will we survive?
Keys to survive as an entrepreneur
Ditch price leadership strategy – if your strategy is to keep slashing your prices and offering discount you are in trouble, in the short run it will help you but in the long run it will hurt your business, recessions do not last a life time.so what happens when the recession is over. People will not accept your increased price once the recession is over and that means they will keep seeing you as the cheap alternative and in a boom the cheap alternatives don’t make money.
Cut out waste – most business are not built for efficiency. During a recession the entrepreneur should learn to maximize not just himself and staff, but his process and systems. Eg. If a letter can be further edited to enter into a page please do, as far as you don't compromise the message. Efficiency of Streamline is the keyword. In your marketing you must not do full color Ads you can reduce the color and be more creative. You can also switch to direct printing to save cost on your flyers.
Stick with the numbers – if your business does not have a metrics that guides you then you have to start one immediately. During a recession you need to know the numbers, the metrics/ indices on which your business is built to make sure you are profitable. These numbers will help you as you want to cut out waste or let go of staff.
Cross-Train your staff- most people think it is best to fire in a recession, firing kills morale and in the long run it reduces productivity of the ones you did not fire.so what you should do, is actually to cross train, if she was your cleaner turn her to the front desk as well, if he was your marketer turn him to a driver as well. That way you increase efficiency and reduce staff strength.
Focus on Value – Value is what thrives in recession, most people are quick to point to price but when you attached value adding services and products to the customer you can easily keep them, eg you can decided to transport your finished product to the location of choice of your client at no added cost.
Maximize your marketing - Your competition is feeling the crunch also so don’t get comfortable with your market share or they will soon take them from you. Engage your clients to become serious brand ambassador of your business, you can do this by asking them at the end of every transaction to tell your friends about you, send them follow up emails and text message reminding them of the offers you have in the business.
Recessions do not last forever, just like everything that has an end has a beginning be sure that the recession will pass. Just make sure you don’t ruin your brand and business in the bid to survive the recession because the boom is coming and we at employment shift can smell it.
