Petr Marek, founder and CEO of Invoice Home, an invoice-generating platform designed for small businesses, freelancers and entrepreneurs.
The first few months of 2025 have thrown many challenges at small-business owners. With May as National Small Business Month, I want to highlight the crucial role small businesses play in this economy and how they can remain resilient and adapt to changes, particularly during times of uncertainty.
As markets rapidly evolve, many small businesses may need to pivot to meet customer demand. While businesses like contractors or plumbers likely won’t experience the same extremes of, say, a retail business, there is still the reality that they could face reduced customer demand as the economy shakes out, especially with many consumers cutting back on their spending right now.
While it might seem to go against logical thinking, I believe a downturn in the market is actually an ideal time to test a new product or service. Doing so on a small scale lets you gauge interest with your audience before making a larger investment. There is also an added opportunity to look into new channels. For example, before the pandemic, many restaurants didn’t offer online ordering. But as in-person dining became limited, they had to pivot quickly to continue serving customers. These are the moments that force innovation, and resisting it could result in your business being left behind.
Adapting To Economic Uncertainty And Changing Consumer Behavior
Listen to what your customers want.
In times of economic uncertainty, businesses must remain agile and responsive to shifting market conditions. Changing consumer behavior means you’ll need to shift strategies that might have previously worked. Listening to your customers—and their evolving needs—is essential for navigating these challenges and continuing to build loyalty. Expectations shift quickly, so whether your customers want new payment options, personalized service or faster delivery, small businesses need to listen and respond fast.
As I mentioned earlier, I realize that it might seem counterintuitive to test new products or services during a downturn or period of uncertainty, but being strategic about it can maximize your chances of success in the long run. Above all, I believe remaining agile will keep your business on track throughout the highs and the lows.
But before you jump in, ask yourself: What sets us apart? What are we really good at? The answer to these should be your main focus and the core of everything you do.
Establish your digital presence.
The reality is that even if your business isn’t “online” (for example, you are a contractor or plumber offering a service or you’re a local store owner), building a digital presence is essential to stay competitive in today’s business landscape.
First and foremost, I would start with online reviews and optimizing your presence on search engines, such as Google. Customers will continue to look to online reviews when making purchasing decisions.
Taking it a step further, enhancing your social media presence is a great way to connect with customers. To get started, be consistent in posting, as many algorithms take activity level into account when it comes to visibility. Not only should you be proactively posting content, but you should also ensure you respond to questions from customers, as well as comments and reviews. This can help with both activity level and in showing customers that you care about them and their feedback.
A digital presence can also help you build stronger relationships with customers, ultimately increasing their loyalty. Providing consistent, exceptional customer service online and responding thoughtfully is critical to maintaining a positive customer experience.
Reward customer loyalty.
In times of economic uncertainty, as customers are shifting behavior when it comes to consumer spending, it’s important to reward loyalty. You can offer special discounts to loyal customers or create “loyalty events” for a limited time, where you offer a coupon code to be redeemed if the customer makes a purchase within a specific timeframe. These types of offerings can go a long way in providing customers a sense of certainty in a world of uncertainty.
Looking Ahead
To build long-term resilience and future-proof your business, there are three key things to keep in mind:
• Ensure your business has adequate savings. If you don’t, you may need to consider areas your business can cut back to build up that safety net.
• Keep communication with your customers top of mind. I believe building relationships with your customers during tough times is arguably more important for the long haul.
• Consider automating repetitive tasks with technology. This helps free your time to focus on your customers and your business.
By focusing on these key components, you can help your small business withstand challenging economic uncertainty and establish a foundation for future growth. Resilience isn’t built overnight, but by staying the course, controlling what you can and adapting when necessary, you can position your business to thrive no matter the circumstances.
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