RECESSION PROOF YOUR BUSINESS
There is a lot of talk of an impending RECESSION going on…
This word causes many business owners to quake in their boots! And rightfully so, as a lot of companies DO actually go out of business during an economic downturn. Are you wondering to yourself,
- “Will I have to lay off employees?”
- “Will I have to downsize my storefront?”
- “Will I have to slash prices just to keep my company’s doors open?”
What if I told you that you make your own economy? Would you think differently of the word “recession” then? All businesses require the owner to make educated decisions about how to move their company along in the direction of their dreams, to be successful. A recession is no different in that it requires planning and thinking ahead and using smart methods to anticipate and prevent issues from coming up in the first place. There are a lot of big changes you can make to recession-proof your company. There are also many SMALL things you can do to set your business up for success through this upcoming downturn.
WHY recession-proof my business?
The biggest reason to recession-proof your business is so that you can not only simply remain in business, but so that you can THRIVE through this economic slump! When you recession-proof your business, you are being proactive and thinking about what the upcoming changes will mean for your company, and how to work within/around these changes. After recession-proofing, your company could be a stronger and more profitable than you ever imagined possible!
HOW do I recession proof my business?
There are a multitude of things you can do to recession-proof your business, which is why trying to figure out what to do first can be extremely confusing. The small things can make a big difference, so I always suggest you start out there. The big items will also make a difference, but it might take longer to see the results right away. You should pick a few of those bigger ideas and work on those methods of recession-proofing as well. A good balance will get you immediate results and even more results down the line as well!
WHEN do I need to recession proof my business?
The quick and easy answer is ALWAYS. If you wait until times of scarcity it may be difficult to think clearly in order to keep your company afloat, and it will often be too late. Instead, it’s a good idea to continually evaluate where the company is and implement specific strategies to prevent any type of economic low from affecting the company’s bottom line.m, if needed.
Tips To Help You Recession-Proof Your Business
- Save instead of spending.
- Look at all the expenses you have and trim away what you can. A lot of people have subscriptions to services they don’t use any longer.
- Raise your prices.
- Don’t discount your services without a strategic reason.
- Evaluate your customer service to align it with your customers’ expectations for their ultimate satisfaction
- Set client expectations as clearly and thoroughly as you can. Only then can you MEET those expectations you set together/shared with them.
- Reassess your target market and ideal client. It may change during a recession.
- Reassess your product or service – does it meet current needs, or has it become “outdated”?
- Evaluate employee relations. Unhappy employees lead to unhappy clients. Happy employees take care of the client and that, in turn, takes care of the company.
- Pay your employees more than your competitors pay.
- Keep your advertising budget the same as in non-recession times, maybe even more. If you stop spending money on the things that bring you clients, you will not have enough money in the company and it will likely close.
- Overdeliver and under promise.
- Ask every person who contacts the company how they heard about you and track all responses in a spreadsheet that can be sorted by the answers you get.
- Don’t be afraid to ask more detailed questions about the answers you get, for example, if the client says they found you on google, ask them what the terms were that they searched by.
- Also ask if they’ve heard about you any other way- this tells you what form(s) of marketing are working even when they didn’t contact you the first time.
- Branch out and create a new division for the newest needs of the economy
- Reassess your pricing structure. How can you raise prices while ensuring the customer still feel they are getting a good value?
- Create systems for each department of the company. This will improve employee satisfaction, leading to improved customer satisfaction. It will also help the employees to run the company the way the owner wants it to, even when they’re not there. This creates more freedom for the owner.
- Get and keep your financials in order and then learn to read, understand, and interpret them. Financials give you big clues before it’s too late, in most cases.
- Get a mentor.
- Get a business coach.
- Collaborate with other experts in your field.
- Collaborate with experts in other fields that you can refer business back and forth with
Be honest with yourself about all the above. You may come up against some hard truths… but going out of business is an even harder truth if it happens to you. Look at things with new eyes and see what it is that the business needs to be successful. Then you can decide if you’re willing to put in the effort to make that happen or not.
On Point Business Coaching can help you with any of the above methods of recession-proofing your business so you don’t have to do it alone. We have hundreds more ideas on how to keep your business running strong during an economic slump. Contact us now!