How Your Business Can Thrive Even When a Recession Bites Hard

1. Leverage an urgent consumer need.

“Recession does not mean that the people suddenly stop spending money," said Will Rees, director of Worktop Express. "Price comparison certainly becomes higher up the agenda, but people don't buy on price alone. In my opinion, there is a real shift in priority towards value, during a recession. The consumer will carry out a fair degree of research -- and will usually choose to purchase the item that represents the best compromise between price and quality."

For instance, plastic credit cards were created to deal with the problem of fading cardboard credit cards. Airbnb came about as a new way to face the issue of expensive lodging, and it's still doing well. For similar reasons, companies like PayPal, 2Checkout and TransferGo are also still thriving: they solve the funds-transfer problem.

2. Source capital from investors.

If you have a promising project or business model, pitch your business idea to an investor. The objective is to solicit enough funds to get the business up and running and unleash its full potential to hit it big in the market.

3. Find creative alternatives.

During the 2008 recession, companies were closing down their branches due to the cash crunch. Macy's took a different path -- it took to creating virtual stores on the internet where customers could buy products from the convenience of their homes. Other companies, like Ford, Alaska Air and VW, also found creative alternatives.

Coming up with convenient, innovative and cost-effective alternatives will make your business more attractive to consumers. This is because during a recession, consumers look out for better deals.

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SOURCE: ENTREPRENEUR