How The Right Technology Can Make Your Business Recession Proof in 2022?
Every business owner must be aware of the Recession and its unwanted consequences on their business operations! Generally speaking, a Recession can be defined as “a situation of a significant decline in economic activity that spreads across and lasts more than 6 months” as stated by the National Bureau of Economic Research.
Another report by Bloomberg says the median probability of a recession over the next 12 months is 47.5%, up from 30% in June 2022. Additionally, it is said that the US economy is likely to face one recession on an average every 6 years, which means every business from different verticals is on the edge of survival.
So, how can you make your business recession-proof with evolving changes and thrive in any upcoming recession? Before you hire experts from the leading iOS and Android App Development Company, check out our blog to see how a technology investment can make your business recession-proof in 2022.
Ways That Show How Recession Impacts Business Operations
Talking about the current US economic status, the real GDP shrunk by 0.9% in the 2nd quarter of 2022! Industry experts say that the current recession is unusual & can only be resolved with the introduction of digital transformation processes.
As we are aware that the US economy is likely to experience several recessions with varying degrees of severity, we must stay updated on how a recession can impact your business operations.
Read More: Understanding The Reason Why Most Apps Fail and How to Fix It?
Let’s check out how recession may impact three main business factors-
After getting hit by a recession, most businesses face slow-to-no orders and services, which means the average demand for your products and offerings will decline leading to a drop in sales.
As equity markets close for debt costs and new issuance, your business’s financial status may hamper leading to an uncertain and risky period. In addition to that, fully operating companies may struggle for turnover and shed capacity either from a machine perspective or human capital. This shows the importance of technology investment to improve the situation.
This means cutting layoffs to manage the budget and meet reduce in demand for products and services. Recently, many leading companies go for cuts and froze hiring. Netflix, the renowned entertainment firm removed more than 450 positions in a month.
From the above section, it is clear that when the recession can hit even the top enterprise brands, it will be hard for small and mid-scale businesses to survive in a recession. With the help of the right tips and strategies, your business can excel & pave the way to success despite unprecedented recession challenges.
Need for Making Your Business Recession Proof
For a recession-proof business, it is crucial to put your focus on preparation and recovery by giving the flexibility to experiment with innovations and thrive during hard times. Experts believe that by investing in the right technology, businesses are more likely to come ahead even after the market bounces back.
With time, customer expectations have changed completely and traditional approaches will not be very effective. As the new technology evolves every year, the role it plays in every industry is different.
Your business must be able to address current market conditions like limited sales professionals due to remote operations, higher demand for remote internal capabilities, and robust technology for more security and maintenance.
On the other hand, services that are built aligned with the latest technology and innovations like smart homes, Fintech, automated supply, advanced remote e-learning, smart healthcare, etc. are still in demand as they are capable to meet the evolving market changes.
Using the Right Technology Investment for Recession-Proof Business
As we know technological advances play a huge role in making a business grow, and it is important to stay updated with the top aspects that must be kept in mind. Latest technologies such as AI/ML, Internet of Things (IoT), Analytics, Cloud computing, Big Data, Blockchain, etc. are known for their capability to help businesses to lower risks & come up with solutions that help to survive during challenging times.
Here are some of the top technology-based apps used by many successful businesses-
- Advanced Relationship Management Tools
Knowing your target audience & building stronger bonds is a must, which is why having good relationship management tools like CRM, SRM, and SCM are required to upscale business development.
- AI-Based Analytics
To make informed decisions, getting access to unparalleled quality data is needed. This is possible with the help of advanced analytics tools that can help businesses extract intelligent insights and market updates to act smart.
- Automated Solutions
When a business can eliminate hours of administrative and repetitive tasks for the workforce using an automated solution, they are leading to the path of success as they can focus more on what is important for their business goals i.e. increased productivity and better time management.
- Next-Gen Data Management
To meet big data challenges effectively and drive new levels of real-time analytics, using next-generation data collection and management solutions is a wise choice to get better ROI in significant investments, which will eventually lead to the right business goals during a recession.
How Clavax Can Help Your Business Survive & Thrive in Recession?
As a leading end-to-end solution provider, Clavax enables businesses across the globe to transform their ideas into tangible business outcomes with web and app solutions aligned with the latest technology and innovations.
From basic consulting to development and maintenance, our experts can deliver reliable services for the best results by optimizing business processes & automating systems.
If you wish to make your business sustainable, connect with our experts for personalized business guidance & adapt technology services on time. Also, you can make use of our smart app cost calculator to help you get a quick estimate of the App Development Cost in a few minutes.