The start of 2023 has been interesting and dynamic, with most conversations revolving around volatile markets. Now, companies are turning to the next pressing topic of the year: how to protect their revenues. The challenging part about recessions is that they are out of our control, and the best way to navigate them is to manage our own businesses effectively.

This article will dive into how startups and SMEs can assess their current situation, reduce expenses and expand their reach to stabilise or increase revenue while traditional funding methods are slowly drying up.

Reducing expenses and streamlining the business

Reducing expenses is a key strategy to consider when navigating a recession. Companies should cut back on unnecessary expenses, streamline business development spending, and, in the worst case, trim headcount. Reflecting on the successes, failures, and strategies implemented from the previous year is key to identifying what worked, what didn’t, and what needs improvement.

Companies can use these findings to streamline their operations using technology solutions and identify areas that can be expanded to increase revenue. With the rise of ChatGPT and other AI solutions, companies can experiment with these tools to speed up and automate manual processes within their team. This enables them to focus on tasks that drive impact and revenue.

Also Read: A tech worker should be all about improving customer experience: Kim Nguyen of Recruitery

Exploring expanding revenue streams

After refining spending and streamlining business processes, companies should consider their next steps. One key strategy we see businesses using to navigate a recession is exploring new markets. Although not immediately obvious to many startups and SMEs, expanding a business’s reach can improve its chances of surviving a recession. It allows companies to tap into new revenue streams and access more potential clients.

Startups and SMEs interested in exploring new markets should first evaluate whether they are truly ready for such a step, and identify any potential red flags they need to address beforehand. If they identify an opportunity, the next step would be to refine which markets to target and how to adapt their messaging to accommodate different communities and countries.

Companies with an English foundation can usually find their initial stepping stones in other English-speaking markets (Explore the Rainmaking Expand: United Kingdom programme). However, those looking to expand closer to home can explore how to translate and adapt their product to a new language and culture.

Identifying potential in new markets

When a company is ready to expand, it is important to dive into the potential capability and opportunities available in the new market. By utilising expansion frameworks such as the PESTLE Framework and Capability Mapping Framework, companies can identify how viable the new market is for them, as well as identify where they need to invest to make a new market a success further.

By leveraging these frameworks, founders can identify gaps in their own capabilities, focus on the improvements or refines that need to be made and make informed decisions on how they are to invest in the new market and set themselves up for success.

Also Read: A tech worker’s 2023 recession game plan

At Rainmaking Expand, we have also recognised an increasing trend for startups and SMEs to improve and protect their revenues by collaborating with other companies in new markets. This has helped them to accelerate their market entry and reduce the risk.

As a venture development firm, we are able to provide hands-on support from the idea stage to scale, helping companies manage their growth in a smart way and making limited resources go as far as possible.

By understanding the needs of different communities and countries and leveraging our network to secure and leverage potential commercial partnerships, we are able to help startups identify and capitalise on emerging trends in order to achieve success in the new economy.

In order to stay ahead of the competition and remain relevant, startups should be willing to take risks, embrace change, and think outside the box. By utilising the right combination of people, resources, and technology, startups can gain a competitive advantage and increase their chances of success in the new economy. With the right strategies in place, startups can continue to grow, despite the current economic challenges and position themselves for long-term success.

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