Do you have a recession-proof business strategy?

Hardships are unavoidable. There’s no industry, company, or owner that is immune to difficult times.

But, preparing for a downturn isn’t about the ‘worst-case scenario’. Rather, it’s about building a strong foundation when things are at their best.

That’s why we’ve come up with 4 ways that you can begin recession proofing your business today.

Focus on Finances

To prepare for tough times ahead, you’ll need to monitor your cash flow. Of course, every business owner knows this. And, that money coming in vs. coming out is an indication of your financial health.

But, you’d be surprised how many owners are unaware of their exact numbers. Speaking with a trained professional, like a member of our staff can help give insight to where you currently are. And, how you compare to others in the industry.

Knowing this information can also keep your credit in good standing. That way, you’re able to take advantage of credit and loans if times get hard.

Review Expenses

It’s no secret that a business has expenses. But, recession-proofing your business is not always about reviewing what you currently have. Rather, you should be assessing what you have to look towards the future.

You will need to monitor your financial profile regularly and compare it to economic trends. From here, you should assess your business in comparison to where you think the market is going.

This is also best to be done by a professional. A professional is able to give you a non-judgmental and unbiased view of your finances. Especially in comparison to industry standards.

If it’s determined that you might get yourself into some hot water in the future, you can then begin to brainstorm ideas that will keep the cash flow moving.

For example: coming up with ways to increase sales, adding on more billable services, reducing inventory, or swapping vendors for a more competitive rate.

Get Back to Basics

Trying to add new things, products, or services to your roster can quickly get expensive. Not to mention that you might deter repeat clients away from your brand. Introducing new things to your business can also damage your core beliefs and result in a huge waste of time and money.

That’s why we recommend simplifying to protect yourself from a recession. After all, a looming recession might not be the best time to diversify. Rather, focus more on the basics of what you specialize in to retain your clientele.

Focus on the Customer

To get through rough times, it’s critical to focus on your customer. Zero in on your service, and ways that you can improve on it. Spend time identifying customer needs, and ways that you can go above and beyond meeting them.

To do this, you should also be open to criticism and feedback. Really listen to what clients have to say and why they will (or won’t) come back.

You also shouldn’t be shy about marketing. Many owners tend to relax their advertising efforts in hard financial times. But, getting the word out about your brand is imperative for continued success.

Using new marketing strategies and refreshing ads can draw in new clients and retain current ones. In turn, forming an even larger and more loyal client base.

Ultimately, recession-proofing your business is possible. But, a strong focus on your company’s core values, client base, and cash flow are all needed to succeed.

If you’d be interested in learning more, or knowing what services would benefit you, give us a call at 407-328-5001.

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