Adapting Your Payment Systems: What Australian Customers Expect

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WP

7 Often Overlooked Costs of eCommerce Business Development

In the age of online shopping, starting an eCommerce business can be a thrilling experience and one that offers the promise of reaching customers on a global scale. However, the path to online success is also laced with unseen expenses that often catch new digital entrepreneurs off guard.

While it’s easy to focus on the upfront costs — like creating a killer website, social media profiles, and sourcing in-demand products — there are quite a few hidden costs that can really impact your bottom line. Understanding these costs is crucial for proper budgeting and ensuring that in a crowded digital marketplace, your business not only survives but thrives.

Here is a detailed look at 7 hidden costs of eCommerce business development, shared by our team of web designers and eCommerce market experts.

1. Business Insurance: A Crucial Investment

When starting an eCommerce business, one of the first (and arguably the most important) things to consider is business insurance. It’s something that brand new business owners forget about all the time, and yet it could save your company from a range of risks from product liability, cyber attacks and more.

For example, say a customer claims that your product or service caused them harm. This is where business insurance comes in and helps to pay for both the legal fees or costs of damages. Similarly, with data breaches and cyber-attacks becoming more and more common, cyber liability insurance can literally be the difference in making or breaking your business.

The cost of business insurance will depend on the industry you operate in, how big your company is and what type of coverage you choose. Sure, business insurance cover adds another expense to your operation but it can also protect you and give you peace of mind. At the risk of being called out on a no-brainer, protection is not optional — it’s necessary to keep everything that you have worked so hard for.

2. Web hosting and Site Design: More Than Just Initial Costs

Your eCommerce website is literally the heart of everything you do on your online business — it’s the equivalent of your storefront at a shopping centre, but online, so you’ll want to spend some money getting reliable web hosting services and quality design. However, maintaining your e-Commerce website goes beyond just these initial start-up costs.

When it comes to web hosting, upgrades for increased bandwidth, better security features, and scalability options can add to your expenses over time. This is why it pays to pick a plan that will grow with you — so you don’t have to upgrade every year and shell out more money than anticipated.

Shopify, and WooCommerce also have various pricing plans but bear in mind the hidden costs like transaction fees. Shopify, for example, charges you a transaction fee of 2.9%+30 cents on every sale. You will probably take a hit to your margins with these fees so factor them into your pricing.

Professional site design is another area where costs can quickly add up, but don’t get us wrong — a well designed website can make or break your online business. A good eCommerce website should look professional, be functional and easy to navigate. However, ongoing updates and maintenance are also necessary to keep your site fresh and functional, adding to the overall cost.

3. Warehousing: Managing Your Inventory

Another cannot ignore costs that frequently surprise eCommerce businesses is warehousing. If you rent a warehouse (or use a third-party fulfilment service), ongoing costs are required to store and manage your inventory. Similarly, if using a fulfilment service like Fulfilment by Amazon (FBA), remember that storage and order handling fees will apply. While these services certainly make things simpler for you, it is crucial to understand the fee structure and how it affects your profit margins.

On the other hand, self-warehousing requires a different set of investments. You’ll need to secure a location, hire people and put inventory management in place. This gives you a lot more control over how your operations work, but it can also become very costly.

At the end of the day, it all comes down to what works for your business and how much you’re willing to spend. If you have a particular budget in mind, we highly recommend conducting some cost-benefit analysis for all the potential costs involved when considering your options.

4. Supplier Costs: Optimising Your Profit Margins

Dealing with suppliers is part and parcel of running any business. But working with suppliers involves way more than just paying for the products you order. Often, there are additional costs such as minimum order quantities, transportation costs, and price fluctuations due to the market. This is obviously problematic for business owners trying to keep their profit margins.

For instance, if you do not meet a minimum order requirement or need expedited shipping this might cost you more.

Additionally, variable raw material costs can also affect your pricing and profit margins. Knowing these variables and getting ahead of them helps you have a better handle on your own supply chain costs, and can decrease the odds that suppliers are playing games with their prices.

It’s also a good idea to maintain good relationships with suppliers, as strong partnerships can sometimes lead to more favourable terms, better pricing, and more flexibility.

Establishing these ties may result in stability, and transition you more gracefully through cost fluctuations. Great methods for maintaining supplier relationships include staying proactive with supplier communications and maintaining your loyalty as a customer (i.e. looking into diversification opportunities with your suppliers).

5. Shipping & Postage: Your Key To Wider Markets

For any eCommerce business, shipping is a major element. But remember — it’s not just about postage fees for getting products to your customers. You also need to consider the costs of packaging and handling, and any transaction fees or order processing fees involved with making orders through your website.

Order processing fees are one of those operational small business costs you never think to add up – but when you do, you’ll realise just how much those figures cut into your profit margins. If you’re using payment services that do charge order processing fees, then make sure these fees are considered when you set not only your product prices, but also your fee models for shipping and handling.

But what about those free shipping incentives? Offering free shipping for orders over a set dollar value is undeniably one of the easiest ways to attract additional traffic and generate more sales, but make sure you have a limit based on your budget. You may cover the cost of shipping (i.e., rolled into product price), or set a minimum spend for free delivery. Moreover, if you can find efficient/cheaper shipping logistics and options in your area this will benefit the customer as well.

By finding the best delivery prices and optimising your packaging with lower costs, fine tuning these basic shipping and handling processes is foundational to the profitability and scalability of your eCommerce enterprise.

6. Packaging: Enhancing the Customer Experience

Let’s be real — packaging might seem like a trivial matter, but it can without a doubt be instrumental in determining the overall customer experience. Great packaging not only keeps your products safe during shipping but also adds a touch of excitement to the unboxing moment. Sophisticated packaging makes your brand feel super legit and creates a memorable first impression on your customers.

Packaging, however, is not free. Shipping boxes, bubble wrap, honeycomb paper, tissue paper, the dollars can easily add up. Nevertheless, it is in all honesty worth it. It positions your products apart from the competition and keeps customers coming back for more. Plus, with more and more focus on sustainability these days, choosing eco-friendly packaging (compostable mailers, BioFill etc) can be a big win, even if it does cost you a tad bit more.

7. Digital Marketing: Driving Traffic and Sales

In terms of driving traffic to your eCommerce site and turning over sales, digital marketing is that one true friend. But we’ve got to be honest: without a clear-cut strategy in place, digital marketing efforts for eCommerce can get pretty pricey! Advertising on big names like Google, Facebook, and Instagram isn’t just about the ad spend — you’re also looking at costs for creating ads, managing campaigns, and keeping an eye on your analytics.

Spending money on short term ad campaigns can definitely get you some quick traffic and sales, but don’t forget about the long game. This is where SEO and content marketing can make a huge difference. SEO gets your site ranking on search engines like Google which is basically free advertising in comparison to paid ad campaigns. Boosting your website’s visibility in these ‘organic’ traffic channels can be a great method for driving visitors to your domain. And once they’re on your site, your designed customer journey should be able to turn those visitors into converted customers.

And much like organic search marketing, building up your brand on social media can also be a great way to create a buzz around your business. As social media marketing allows for direct communications with your consumer base, building a digital presence that aligns with your branding guidelines and aids in strengthening consumer relationships can help effortlessly elevate your eCommerce business to the point where you may even be able to build up a cult following.

Just remember: smart, realistic budgeting and regularly tweaking your marketing game plan will help you get the most bang for your buck and keep those sales rolling in.

At the end of the day, running an eCommerce business involves WAY more than just a great product and a slick website. It’s all about managing those hidden costs and finding smart ways to keep everything running smoothly without breaking the bank..

With the right strategies and a bit of creativity, you’ll be well on your way to turning your site visitors into paying customers and growing the profit margins of your eCommerce venture.

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Janis Frost

How Trade Finance Can Improve Supply Chain Resilience

In today’s business landscape, the ability to withstand disruptions such as pandemics, natural disasters, and political uncertainties has become essential. Trade finance plays a crucial role in bolstering supply chains and managing risks by providing access to funds and facilitating transactions. This support enables businesses to navigate adverse circumstances while maintaining continuity.

1. Boosting Cash Flow through Trade Finance

An essential aspect of ensuring supply chain resilience is the ability to manage cash flow effectively. Trade finance facilities like invoice financing and factoring help businesses optimise capital by offering funds based on invoices. This injection of liquidity strengthens companies’ financial positions along the supply chain, leading to smoother operations.

2. Filling Financing Gaps in Supply Chains

Supply chains involve multiple stakeholders, each contributing significantly to the process. However, smaller suppliers or importers may face challenges in accessing affordable financing options due to poor credit history or lack of collateral. Trade finance addresses this issue by providing solutions that cater to the needs of these stakeholders, enhancing their position within the supply chain and fostering collaboration.

3. Ensuring Timely Payments for Suppliers

Inefficient payment procedures can disrupt the supply chain ecosystem. Delays in payments create cash flow problems for suppliers and strain business relationships. Trade finance tools, like supply chain finance (SCF) programs, enable companies to offer favourable payment terms to their suppliers while ensuring prompt payments for confirmed orders.

4. Managing Risk Factors

The volatile market environment poses significant risks for businesses engaged in global supply chains. Proactive risk management is crucial for building supply chain resilience. Instruments such as letters of credit (LCs) in trade finance provide security to both buyers and sellers by guaranteeing payment upon meeting specified conditions. This helps mitigate the risk of non-payment and fosters trust in international transactions.

5. Broadening Sources of Supply Chain Financing

Relying on a single financing source can heighten vulnerability during crises or economic downturns. To enhance supply chain resilience, businesses should diversify their financing sources. Trade finance offers a variety of funding options, including trade credit insurance and export credit agencies (ECAs), which enhance stability and reduce dependence on any one funding channel.

6. Leveraging Digital Solutions for Efficiency

Utilising technology is essential for streamlining supply chain operations and improving resilience. Platform adoption speeds up transactions, simplifies document processing, and minimises paperwork-related obstacles. Trade finance platforms facilitate real-time coordination among stakeholders, ensuring transparency, efficiency, and smooth business transactions.

7. Supply Chain Traceability and Trade Finance

Supply chain traceability has become increasingly important, not only for sustainability but also to ensure the resilience of supply chains. By utilising trade finance solutions, companies can fund technologies and processes that improve traceability, such as blockchain systems or RFID tags. These measures boost visibility and allow for swift responses in case of disruptions or quality issues in the supply chain, ultimately enhancing resilience.

8. Collaborative Supplier Relationships and Trade Finance

Establishing strong relationships with suppliers is crucial for a resilient supply chain. Trade finance can support collaboration through payment programs or dynamic discounting initiatives, enabling suppliers to receive early payments while buyers negotiate favourable terms. These collaborative efforts build trust between partners and foster long-term stability within the supply chain network.

9. Financial Planning and Risk Mitigation Strategies

Effective use of trade finance extends beyond addressing cash flow needs. It involves strategic planning to anticipate risks and minimise their impact on supply chain resilience. Companies can utilise trade-related tools, like trade credit insurance or credit risk guarantees, to safeguard against default or insolvency of partners.

Conclusion

Through careful evaluation of risks and strategic financial planning, companies can create a more robust framework for their supply chains. In today’s market, trade finance plays a pivotal role in enhancing supply chain resilience by addressing cash flow challenges, offering accessible financing to all involved parties, managing risks effectively, diversifying sources of funding, and integrating digital solutions. Embracing trade finance as a tool is essential for businesses to navigate disruptions and maintain a competitive edge in an ever-evolving business environment.

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Janis Frost

From Research to Acquisition: The Ultimate Guide to Buy a Business for Sale

Buying a business for sale can be an exciting and profitable endeavour. Whether you’re an aspiring entrepreneur or an experienced investor, this offers numerous advantages, including existing customers, established brand recognition, and an immediate revenue stream.

However, navigating the process from research to acquisition requires careful planning and consideration. Let this article walk you through the fundamental steps to successfully buy a business for sale. Read on for more!

Step 1: Define your goals and criteria

It’s important to establish goals and criteria before purchasing a business so that you can make a well-thought-out and strategic choice. Here are some steps to help you outline them:

Clarify your personal and professional goals

Understand how owning this business fits into your long-term personal and professional plans. Determine your financial objectives, including desired income and growth potential. Also, consider how the company will impact your lifestyle, including work-life balance and time commitment.

Identify industry preferences

Select a sector that corresponds to your hobbies, talents, and expertise. Also, research industry trends, market conditions, and future outlook to ensure sustainability. This will help you choose a business in a sector you’re passionate about and with promising prospects.

Define business size and scope

Set minimum and maximum limits for annual revenue and profitability. Moreover, you must decide on the preferred size of the workforce and determine if you have a specific location preference or are open to various regions. These parameters will help you find a business that matches your capacity and ambitions.

Establish financial criteria

Define your budget for the purchase, including the total investment you’re willing to make. Doing so will help you choose a business with a financial requirement within your comfort zone.

Seek professional advice

Engage with business brokers, consultants, and industry experts to gain valuable insights. If you can, hire a lawyer to review contracts and ensure legal compliance. Consult with people you trust to arrive at a well-informed decision.

Setting well-defined goals and criteria will help you narrow your search and purchase a business that best aligns with your objectives.

Step 2: Conduct market research

Understanding the market through research is essential when looking into businesses for sale in your preferred industry and location. This includes analysing market trends, competition, and potential growth opportunities. You can also utilise resources such as industry reports, online business marketplaces, and networking with industry professionals to gather valuable insights.

Step 3: Find a local business for sale

Finding a local business for sale involves several online and offline strategies to ensure you get a good selection of potential opportunities. Here are some practical ways to do it:

Online business marketplaces: These platforms ought to be one of your first stops in your quest to find a local business for sale. Here, you can find lists of companies from various industries and locations. Narrow your search using on your preferences, including location, industry, and price range.

Local business brokers: Agents have the ability to reach a diverse array of listings that might not be available to the general public. Additionally, they’re able to offer valuable guidance and support during the purchasing journey. Search for brokers in your area and schedule consultations to discuss your needs.

Networking: Networking with local business owners, attending industry events, and joining local business associations can open doors to potential opportunities. Often, business owners prefer to sell their businesses through personal connections rather than public listings. Let your network know you’re looking to buy a business.

Local newspapers and magazines: Check the classifieds section of local newspapers and magazines for business sale advertisements. Many small business owners still use traditional media to reach potential buyers within their community.

Chamber of Commerce: You can get in touch with your local Chamber of Commerce as they often have information about businesses in the area, including those up for sale.

Online classifieds and forums: Websites like Craigslist, Facebook Marketplace, and LinkedIn can be good places to find local businesses for sale. Additionally, joining local business forums and social media groups can provide leads and information about businesses looking for new owners.

Business development centres: Local small business development centres or economic development offices often have resources and information about businesses for sale. These organisations can also provide support and guidance throughout the buying process.

Starting locally is often beneficial when searching for a business to purchase. Local companies offer the advantages of familiarity with the market and easier due diligence. By combining the above strategies, you can increase your chances of finding a business that meets your criteria and fits your goals.

Step 4: Evaluate potential businesses

Once you’ve identified potential businesses, it’s time to evaluate them thoroughly. Some of the factors to consider include:

Financial health: Review financial statements, tax returns, and cash flow projections.

Business operations: Understand day-to-day operations, team member roles, and management structure.

Customer base: Analyse the customer demographics and loyalty.

Market position: Assess the business’s competitive position and market share.

Legal considerations: Check for legal issues, pending lawsuits, or regulatory compliance requirements.

Engaging with a professional accountant and lawyer during this phase can help you comprehensively understand the business’s condition.

Step 5: Secure financing

Financing solutions can be helpful for those who don’t have enough capital to buy a business outright. Options for financing include:

• Personal savings or investments
• Bank loans
• Financing provided by the seller (when the seller agrees to receive part of the payment in installments).

It’s essential to evaluate each option’s pros and cons and weigh them based on your financial situation and risk tolerance.

Step 6: Negotiate the deal

Negotiation is a critical step in the acquisition process. You must agree on the purchase price, payment terms, and contingencies. It’s often beneficial to have a business broker or a lawyer experienced in business acquisitions to assist with negotiations. Ensure that all terms are clearly stipulated and agreed upon in a letter of intent.

Step 7: Perform due diligence

Due diligence is a thorough business investigation to verify the information provided and uncover potential issues. This includes:

• Reviewing financial records and tax filings
• Inspecting business assets and property
• Evaluating contracts, leases, and intellectual property
• Interviewing key employees and customers

Due diligence helps ensure that there are no hidden surprises after the purchase.

Step 8: Finalise the purchase agreement

Once you complete due diligence and are satisfied with the findings, you can finalise the purchase agreement. Make sure this official document clearly states the terms and conditions of the sale. It should cover everything related to the transaction, such as transferring assets, liabilities, and providing support after the sale.

Step 9: Transition and integration

After acquiring the business, the transition phase begins. Develop a transition plan that includes:

• Communicating with employees and customers about the change in ownership
• Implementing any immediate changes or improvements
• Ensuring a smooth handover of operations from the previous owner

A well-executed transition plan helps maintain business continuity and sets the stage for future success.

Why buy a business for sale?

Buying a business offers several advantages over starting a business from scratch. Here are some of them:

1. Established brand and reputation

An existing business often has an established brand, which means customers are already familiar with and trust the company. Building a strong brand recognition can greatly cut down on the resources required for marketing and establishing the brand. Additionally, a positive reputation in the market can lead to loyal customers and repeat business, which can take years to build from scratch.

2. Immediate cash flow

When you buy a business, you acquire a company already generating revenue and profits, providing immediate cash flow. This can offer more financial stability compared to the uncertain initial phase of a startup, where generating income can take months or even years.

3. Existing customer base

Acquiring an existing business means you gain an established customer base with built relationships, reducing the time and effort needed to attract new customers. Furthermore, the company already has a presence in the market, making it easier to retain customers and build on existing marketing efforts.

4. Operational infrastructure

A well-established business already has a proven business model in place, which helps minimise the risks that come with untested ideas and strategies. With operational processes, systems, and procedures already set up, you can run daily operations more smoothly and concentrate on expanding and making strategic enhancements.

5. Experienced employees

When you buy a business, you often acquire an experienced team familiar with its operations and industry, ensuring continuity and stability. It has the potential to greatly cut down on the time and resources needed for hiring and training, giving you the chance to make the most of the skills of your current employees.

6. Vendor and supplier relationships

An existing business likely has established relationships with reliable vendors and suppliers, ensuring a steady supply of goods and services. These beneficial terms and agreements with suppliers can help manage costs effectively and maintain business operations without disruption.

7. Easier access to financing

Lenders may favour established businesses with a proven track record over startups with no history. Detailed financial records and performance history can help secure financing and attract investors, providing the necessary capital to support your acquisition and growth plans.

8. Reduced risk

An existing business has already demonstrated viability in the market, reducing the risk of failure compared to starting a new venture. The business’s history reveals past challenges and how they were addressed, providing valuable insights for future decision-making and risk management.

9. Time savings

Buying a business allows you to skip the time-consuming startup phase, enabling you to start operations and generate income more quickly. With an established foundation, you can focus on scaling and expanding the business rather than building it from the ground up, accelerating your path to growth and profitability.

10. Support from the previous owner

The previous owner may offer training and support during the transition period, helping you understand the business intricacies and ensuring a smooth handover. Some agreements also include ongoing consultation from the former owner, providing valuable advice and guidance based on their experience and knowledge.

These advantages can significantly reduce the risks and challenges of starting a new venture, making business acquisition an attractive option for aspiring entrepreneurs and investors.

Who will benefit from buying a business for sale?

Buying a business is an ideal option for various individuals and entities. Here are some profiles for whom this option is particularly suitable:

1. Aspiring entrepreneurs

For individuals looking to become business owners without going through the lengthy and uncertain startup phase, buying an existing business offers a quicker path to ownership. It provides a ready-made platform to apply their skills and ideas while benefiting from an established operation.

2. Experienced business professionals

Those with a background in business management, marketing, finance, or other relevant fields can leverage their expertise to take an existing business to new heights. Their experience can help optimise operations, drive growth, and effectively implement strategic improvements.

3. Investors

If you’re looking for a stable source of income and a secure investment option, you may be attracted to purchasing an existing business. Well-established companies with a history of profitability typically pose less risk compared to launching a brand new business. Investors can focus on maximising returns and expanding the business portfolio.

4. Career changers

Those seeking a career change to explore a specific industry might find buying a business an ideal option. This approach allows them to enter a new field with an established foothold, reducing the learning curve and associated risks.

5. Family business successors

Buying a business for family members taking over an existing family business can ensure continuity and preserve the legacy. It provides a structured transition and allows the successor to build on the established foundation while bringing fresh perspectives and strategies.

6. Corporate expansion

Businesses aiming to increase their market presence or expand their product range may discover that acquiring an existing company is beneficial. This strategy allows them to enter new markets quickly, gain access to new customer bases, and integrate established operations with their own.

7. Retiring entrepreneurs

Entrepreneurs nearing retirement who want to step back from day-to-day operations might consider selling their business to a motivated buyer. The new owner can bring fresh energy and ideas to the company, while the retiring entrepreneur can ensure a smooth transition and continuity.

8. Entrepreneurs seeking growth opportunities

For those who already own a business and are looking to grow through acquisition, buying another business can provide immediate scale and partnerships. By doing this, they can increase their market share, broaden their product range, and benefit from economies of scale.

9. People with access to capital

People with access to sufficient capital, whether through personal savings, investor backing, or financing options, might find buying a business a practical investment. They can leverage their financial resources to acquire and grow an established business, potentially achieving a quicker return on investment than starting a new one.

10. Franchise seekers

Individuals interested in the franchise model can benefit from buying an existing franchise business. This option offers the advantages of an established brand and proven business model, with the added benefit of an operational franchise with a customer base and trained employees.

Buying a business offers the opportunity to gain from a previously established business entity, reducing many uncertainties and risks associated with starting a business from scratch.

Conclusion

Purchasing a business for sale is a big decision that needs to be thought out and done carefully. By following these steps, you can improve your odds of making a successful purchase. Keep in mind that getting guidance from accountants, lawyers, and business brokers can be really helpful in making smart choices and steering clear of possible problems.

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Author:  Editorial Staff

Top Business Strategies for Thriving in a Volatile Market

Top Business Strategies for Thriving in a Volatile Market
Running a business can be complex. One moment you could be raking in profits, and the next you could be enduring a long, dry spell.

With the highs and lows of doing business, entrepreneurs should remain resilient in the face of all these challenges.

However, this is often easier said than done. In a volatile market, a lot of obstacles can come your way and make it difficult to succeed in the long term.

These situations—ranging from competing with other businesses for market share to worsening economic conditions—are hard to predict and can lead to adverse business outcomes.

That said, what separates a thriving business from a failing one is its ability to ideate and implement sound strategies relevant to current conditions.

If you want your business to thrive in a volatile environment, here are eight useful business strategies you should heavily consider to help you.

1. Leverage Business Financing Options

Many new business owners don’t start with all the necessary capital in their initial stages. They often have to bootstrap or make operational limitations before going all-in on their business idea.

Conversely, businesses may have the capital they need to sustain their operations in the short term, but they could face a sudden downturn due to volatile market conditions, wiping out their existing funds and causing them to enter a more defensive position in the market.

One way to circumvent these financial issues is by utilizing business financing options. These financing options help give you capital to run or sustain your operations. There are many ways you can acquire the funds necessary to expand or sustain your business.

For instance, if you want to act quickly and decisively, you can leverage bank loans, hire purchase agreements, or chattel mortgage agreements to secure a piece of equipment or vehicle faster. You may also consider leasing if you don’t intend to keep the asset in the long term.

These financing options provide you with a quick lump-sum payment (or wallet-friendly repayment schemes) that can help your business thrive in volatile market conditions.

Unsure what financing method to choose for your business? Westpac’s guide gives a more informative breakdown that differentiates these business financing decisions.

2. Use Data to Drive Decision-Making

When doing business in a precarious situation, you’ll have to gather all your hunches and guesswork and throw them out of the window. The number-one most important metric for surviving in business is data.

Data provides quantifiable evidence that can inform decision-making. It comes in various forms, from historic sales numbers to changing market trends. Data gives you deep insight into all these factors and more, and it can also help in various facets of business operations.

By utilizing big data, you can minimize risks and maximize opportunities in the business world. You can utilize data in different ways, like making financial projections, segmenting customers, and making performance metric reports. Data can spell the difference between making an inefficient business decision and a profitable one.

As such, if you don’t have systems in place that gather, analyze, and interpret data yet, you should seriously consider building one. Having a data analytics team or system can help you find gaps in the market that can allow you to thrive in the face of volatile market conditions.

3. Hone in on Your Target Market

Another important strategy businesses should consider to thrive in a volatile market is to niche down and target their customer persona.

Every business owner and marketer knows that you can’t sell to everyone. If you attempt to do so, you may as well be flushing your marketing campaign funds down the sink.

Instead, it’s important that you build an ideal customer persona and always consider them when you’re marketing your product or service.

For instance, if you’re selling a luxury, vegan dishwashing soap, then your target market should be affluent, health-conscious, and environmentally conscious adults. Use historic data metrics to uncover your usual customers and structure your marketing campaigns around these people.

Always aim to stay relevant to these people. By defining and reaching your target market, you can remain ahead of your competitors, sustain a loyal customer base, and grow your business even during economic downturns.

4. Make a Unique Selling Point

If you want to stand out in a competitive market, it’s important to have a strong, unique selling point. Having one can help you resonate with your target audience more easily, helping you stand out against the competition and foster customer loyalty.

To make a unique selling point (or UPS, for short), make a list of the differentiating factors your product or service has over its competitors. Then, see how you can market these differentiating points and angle them in a way that can engage and capture your core audience.

By offering something unique and compelling, you’re allowing your customers to see the value of your product or service even in declining economic conditions. This can be enough to help your business remain stable and even grow during these times.

5. Push Out Alternative Products

If your current catalog of products or services is experiencing a slowdown in sales, even with bolstered marketing efforts, it may be time to pivot.

Customer needs can change over time. What may be trendy one day could be undesirable the next. As such, it’s important to stay aware of evolving customer standards and emerging trends so that you can capitalize on these things.

For instance, if you specialize in fruit shakes and find that banana and avocado variants aren’t generating enough sales, then you can consider adding other fruits to the mix, like strawberries or pineapple. Conversely, you can consider switching things up and mixing two different flavors.

It’s important that you make your decision based on historical data and backed-up research. Furthermore, avoid spending all your capital on the project in one go. In doing so, you’ll minimize losses and have a higher chance of succeeding in your diversification efforts.

6. Uphold High Product/Service Quality

No matter how dynamic a market becomes, all consumers want one guarantee: an exceptional product or service. As such, it’s important that you maintain a consistently high-quality control process in all steps of the manufacturing and delivery processes.

Always see to it that your product or service is made and delivered flawlessly.

Form a quality-control team to oversee the products being pushed out and make a standard operating procedure that systematized what can be launched to the public and what needs to be scrapped.

Delivering high-quality products helps solidify your reputation and makes your business a trusted and preferred choice for consumers, especially during declining market conditions where people have tighter spending behaviour.

7. Adapt to Changing Market Conditions

The worst thing a business owner can do is remain stagnant in the face of changing market conditions.

Look at the taxi and physical CD industries. They were once pioneers in their industry but have now fallen flat on their faces due to new disruptors emerging from the shadows.

Adaptability is critical to success, especially in volatile market conditions.

To remain on top, businesses have to constantly adapt and respond to these changing conditions. The ones who do so at a rapid pace tend to be the ones who score the most opportunities in the field.

As such, be an entrepreneur who embraces change. Explore alternative business options with a moderate approach. Be agile and responsive. When the world and economy start to change, be sure to change and capitalize alongside it.

8. Network With Partners and Suppliers

A famous saying goes, “It’s lonely being at the top”. But in reality, it doesn’t have to be. Nor it shouldn’t!

Amidst volatile market conditions, entrepreneurs should strive to build and nurture strong relationships with various stakeholders. This includes their suppliers and fellow business partners.

Collaborating with these people can help you score on cost-saving and sales-generating opportunities. For instance, you could allocate resources more efficiently, innovate more rapidly, or even help each other generate more sales.

By joining forces, you can also gain access to new opportunities and insights, which can help you grow your business and navigate volatile market conditions. This can be the crucial factor that allows you to navigate volatile conditions more effectively.

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Author:  Rebecca Lee