13 SUREFIRE WAYS TO RECESSION-PROOF YOUR BUSINESS
With wars, rumors of wars, political changeovers and consumer uncertainty leading to economic slowdowns, the threat of a recession to a business owner can be nerve-wracking. Successful entrepreneurship isn’t about who is the biggest, it’s about who lasts the longest. Lasting long is an art and a science.
Having great customer and vendor relationships, a great product and having the ability to spot shifting trends will all lead a long-lasting business. most businesses won’t last 5 years, much less become generational. So, what separates the winners from losers? Companies that can weather severe storms. Storms are not about, “if” they are coming. It is about “when” they come. And when they come, what are you gonna do about it?
Well, here are 13 ways to position your business to weather an economic downturn.
Diversify Your Offerings: Restaurants sell food, but they can also sell product. That savory barbeque sauce that your customers are addicted to? Bottle it up and put on the shelves in your restaurant. That way, if they choose to cutback on eating out, they can still enjoy your secret recipe.
Diversify Revenue Streams: That restaurant we just mentioned? Yeah, setup a catering service, setup a vendor table at events, or setup food delivery services. These are called concentric diversification. Wanna go wider? Rent out your kitchen during off hours, rent out the dining area for non-catered events, or teach cooking classes online. This is called conglomerate diversification.
Scalable Services: Whatever your business, offer automated on-demand webinars. There is no cost to you, until someone enrolls. There are many subscription-based platforms that can assist you but you want the platforms that only charges when someone enrolls.
Scalable Expenses: Run a food truck? Change to Square or Paypal to process your merchant processing. There are many merchant processors who charge monthly fees. You don’t want that heading into a recession. Cut those costs.
Downsize: Run a printing company? Move into a smaller unit, reduce your staff, get rid of unused equipment and cutback on the amount of insurance coverage you have.
Remove Subscriptions: Run a chiropractic practice? Cancel your business magazine subscriptions. Cancel your prescheduled office water delivery. Cancel your Amazon Prime (Ouch! Lol). No need for these expenses, no matter how little.
Secure Contractors: Run a medical supply company? Secure contracts for your services. You don’t necessarily have to wait for RFP (request for proposals) to be available. You can create your own contract opportunities and present them to your customers (B2C), B2B or B2G.
Outsource Services: Having operations in-house can be very costly, especially if the activities aren’t sufficed enough to warrant having them in-house. So, outsource them. For example, your marketing, your sales, executive assistant or your janitorial services.
Terminate Contracts: Run mental a health clinic? Get rid of that pesky cable (and Wi-Fi) contract for your office. Cut the cord. I know, I am sounding hypocritical because I told you to get secure contracts. Yes, what you are doing is getting on the other side of the deals.
Repurpose/Leverage: Run a spa? Solicit businesses to run ads on your waiting room TV screen, rent space on your shelf for products or perhaps, pay you to place their business cards in each of the shopping bags upon checkout. All these costs you nothing! They simply add revenue.
Non-Labor Services: Offer services that won’t cause you to retain labor. Are you an expert in your field? Are you an attorney, an accountant? Write that book, make it available as a digital download or you can allow Amazon to handle all of the procuring of it.
Avoid Personal Financing: Have an LLC or Corporation? Do not tie your name to any financial Debt or Credit. If you currently have, refinance it into your business’ name. Personal credit obligations can not only be stressful,
they can impact you personally by affecting your assets and other safety nets in ways that can cause harm. If you need help getting this done, we can help you. Simply click here.
Technology: Run a daycare center? Install a chat widget on your website where someone can communicate with multiple inquiries at once. Maybe, install an AI responder that can handle basic questions. Add a more detailed phone voice menu with instructional prompts for incoming calls. This cuts down on a larger staff needing to be available to take calls, answer routine questions and take messages.
(Not written with AI Assistance. 100% Human)
There are two main objectives in preparing for a recession; reducing costs and increasing/stabilizing revenue.
These 13 enumerations will help you do just that.
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