BUSINESS

How to Stay Afloat During a Downturn: A Proven Strategy for Businesses

Navigating and using slowdowns to your advantage

Slump. Downturn. Trough. Recession. Slowdown. Call it what you will, it exists. Cycles are present even in industries that are growing.

Made by Mansimar Singh using Canva

The Strategy

Your slump is your supplier’s slump too.

When the market is bad, you can ask for lower prices.

Buy Cheap, Sell Cheap, Build Up Volume

Negotiate like your life depends on it (it probably does, well not LIFE, but your lifestyle?)

Even if profit margins are squeezed, simply sell more product.

• Your supply chain will become robust.
• Your operations — lean.
• Distribution channels — optimized to handle large quantities.

You will be in a sweet spot when the cycle turns (it always turns).

Believe.

The pricing power gods will smile again.

You’ll probably build up inventory along the way.

When your competitors rush to suppliers for production, you will get a premium for your inventory.

Hello, Margins :)

PS — Buying during slowdowns needs courage.