Is your business prepared for the next recession?
While we can't predict when the next recession will be, we can prepare our businesses for the next downturn.
Whenever that may occur.
Below are 8 things to keep in mind when preparing your small business for a recession.
When boom times are around it is easy for a business to get away with some sloppy financial management. (They shouldn’t but they do!)
Yet, when the economy changes, and business is not as easy to win. Those financial leaks will make it harder to stay in business.
So, what should you be paying attention to?
Having your entire business based on one service or client is a good way to end up out of business. Recession or not.
If you only have one method of getting new clients, then you are risking that supply source being cut off or minimized.
Diversification in a business is a great way to ensure that you can manage a recession.
To prepare consider the following:
Besides for the above items, ensuring that you are running a tight ship is critical. It is easy during the good times to let things slide. To not worry about the holes because you are finding success.
So, what is running a good business look like?
It includes what we have talked about before, but also:
How you think about recessions can be the deciding factor on your success.
If you believe you will lose during a recession you will.
If you believe you will succeed your chances dramatically improve.
Start paying attention to what you are thinking as you work on your business. This will give you an idea on what beliefs and attitudes are guiding you and your business.
These are all changeable, if you are aware of them. But it does not happen overnight. So, starting now is the best way to have a positive mindset down the road.
Do you think every new initiative is going to be an uphill battle before you succeed?
If you do then, when you grow, you will encounter problems. If instead you change your belief to “success comes to me easily” your journey will be smoother.
How do you do this? Once you identify a belief that needs adjusted, you can do things such as:
One final thing to cover. Recessions are unpredictable. Not only do we not know exactly when they will occur, we also don’t know:
Because of these unknowns, nothing is guaranteed. You can do everything perfectly. But if it hits your industry and goes on for a long time and is a serve recession – you may still not make it.
As you are working on your business, don’t let anyone tell you anything is guaranteed. That is an impossible promise for people to make.
Do the best you can with what you have. If at the end of the day you can say you did all you could – that is a win.
For more help and guidance on improving how your business run, schedule a free strategy call. We can chat and see if working together would be a good fit! Click this link to schedule today.
Andrea Travillian is the founder of Aspirify, Inc. Andrea has her BBA in finance from the University of Iowa, her MBA from Creighton University and her coaching certificate from the International Coaching Academy. She is an author, speaker, and most importantly mom.