Recessions are unavoidable, but if you plan ahead your business can survive and grow stronger as a result. If you’re worried about a recession and what it might do to your business, you’re not alone. But there are things you can do to help recession-proof your business.
Have Adaptability
Change is inevitable, so the ability to pivot and be flexible is key to surviving any recession.
Understanding and serving your customers’ needs is important at any time. But it’s crucial to empathize with their struggles during a recession. Utilize primary research to understand these changes better.
By conducting customer research via surveys or focus groups, you’ll understand how your customers’ needs and buying habits are shifting.
Cut Costs
Keeping a close eye on expenses and cash flow can help you plan for your financial future and avoid overspending. Get creative with your spending.
It is recommended to keep six months’ worth of expenses in savings in case your sales drop. However, this isn’t always possible, so you may want to explore financing options. It’s always better to have access to a line of credit before you need it.
Invest in Your Business Still
Surviving an economic downturn will be difficult for any business owner, but keep looking for opportunities, even when things feel bleak. On average, recessions last 11 months, and although stocks are taking a beating right now, historically they recover well after a recession.
Don’t stop marketing and advertising. Check out these marketing trends that are sure to help you finish the year strong. There is strong research that indicates businesses that continue to invest in themselves and advertise during recessions come back stronger, and bounce back faster than those that don’t.