Question

how can small businesses deal with financial crisis?

how do they deal with Marketing and promotional cost

Answer 1

Small business:

Small business is most vulnerable during a financial crisis. Even a sale decline or low footfall creates the issue to run a small business. The small business owner doesn't have buffer cash to run the business during an economic crisis. So most of the time they don't survive.

But the following steps will help in surviving the running small business.

1.Cash Flow Management: This is key to run any business. There should be always a transaction occurs while running the business. So Purchase and sale activities should happen and it will give breathing time for revival for running a business. There will be a cus on incremental sales and cut in unnecessary expenses.

2. Supplier and stock management: Management should reduce the stock cost by increasing the frequency of supplies and sourcing should change where they can get the pricing correct or lower price. There should be no compromise on the quality. So the r must use multi-sourcing strategy.

4.Marketing and promotion cost: There should be no cut in the promotion cost during the financial crisis. there must be a plan of marketing activities to build business and brand equity. y view is to increase the promotion budget during a financial crisis to bring the customer and create awareness in the et about our business. Marketing efforts will help in customers to take decisions buying the products.

A business owner can use the low-cost model of communication like digital marketing

5. customer Management: Small Business owners must focus on retaining the existing customer base and through differentiation create a new customer base. We must focus on services to the customer. A satisfies customer can bring many customers. We should discount them during financial crisis timing.It will help in retaining the sale.