How to Make Your Education Company Recession Proof
Predicting when the next recession will begin is a lot like predicting the weather. Let’s say that the weather forecaster predicts rain. There’s little doubt that it will happen, but the problem lies in determining when, where, and how much. Recessions are the same way.
Because it’s hard to pinpoint the specific impact of the next recession, you need a strategy for making your edtech company recession-proof.
Focus on consumer demand
Conventional wisdom tells entrepreneurs to focus on staples when the economy turns sour. People will still eat, drink, wash, and clean. But other industries do surprisingly well, such as candy and cosmetics.
So does education.
Consumers are adamant about continuing education services during a recession. Education readies consumers for change and optimal growth when the recession ends.
Provide superior service
People living through a recession will still pay for the basics, but they also want to look forward to a time of hope. Education provides that hope. In fact, education services tend to boom during a recession because people understand that knowledge and skills can prepare them for better times.
That’s why you should position your edtech company as something of tremendous value. You want your clients to think your product is something they cannot live without, regardless of the economic recession in which they find themselves. To remain viable in a no-frills market, however, your edtech company must show that it can deliver more than the basics to clients.
Sell more than a product; offer unparalleled service.
Get the word out
An economic recession can make you feel like retreating. It’s safer to stay where you are and avoid reaching out to new clients. You know that they’re feeling the same squeeze you’re feeling. Slashing your budget, especially in the area of marketing almost begins to make sense.
Nothing could be worse for your bottom line.
You have to stay connected to your clients during a recession. Continue to work your networks, both offline and online. Advertise with thought-leaders in the education industry to link up with those most needing your services. People tend to form lasting alliances with those who have shared similar trials and ordeals. Empathize with clients while maintaining the same high levels of service and value.
Even though it may be difficult, find the positive in every situation. You will be remembered after the economic recession as the one vendor who could look ahead to blue skies.
Become budget savvy
Managing any company can be trying. Navigating through a storm of a recession can be especially overwhelming because nearly any unpredicted event can make you feel like you’re drowning.
Instead, create a budget and stick to it as closely as possible. Spend on necessities like product improvements, services, and training, but limit unplanned purchases, especially if they are “frills.”
Look ahead to future performance
Recessions don’t last forever. Neither will your current situation if you’re caught in the middle of one. At the end of every bear market is another bull market. Like education, edtech is constantly evolving. Economic recessions can help edtech companies grow and evolve as well, as long as you focus on your clients’ needs.
How do you make sure that your edtech company is economically resistant to external influences?