Let’s face it, the economy is volatile. Whether it’s currently booming or busting, the state of the economy influences small and mid-sized businesses. Interest rates, technology shifts, stagnant wages, rent, and lease rates, and more influence the profitability and sustainability of business owners.
The good news is that with a smart strategy and proactive view, your business can make changes to protect against the impact of a shifting economy, including a potential recession. Make your business recession-proof with the help of Alliance Business Coaching.
Don’t Wait to Act
If you wait until a recession hits to guard your business against a changing economic climate, it’s too late. Invest in smart strategies now in order to be ready for the inevitable market shifts. In fact, as you see a decline in sales or more difficulty in generating and converting leads, you must shift your efforts to match the decline.
How to Recession-Proof Your Business
1 – Stay on Top of Your Financials
No matter how innovative your products or services, if your financials aren’t in order, your company is at risk. Understand your cash flow, including receivables and expenses, to look for areas to improve. Cut unnecessary expenses and stay on top of collections.
Manage your debt correctly by not taking on more than you can reasonably pay. Protect your credit level so that if you need extra financing, you’ll be able to secure credit. Also, review your inventory levels. Don’t allow excess inventory to tie up funds that could be used more wisely.
2 – Good Customer Service
Customers are the backbone of your business. One of the biggest mistakes a business can make is hubris, especially when a recession is looming. You can’t assume that your products or services are so awesome that your customers won’t go somewhere else. Humility is required in business, and this means a good customer is at the core.
Protect your brand image by creating a solid and well-trained team that is passionate about customer service and your offerings. Invest in your current customers with loyalty programs and special deals. Also, look for opportunities to upsell and develop new offers.
3 – Look for Ways to Disrupt the Market
The market is always shifting and disruption happens. Be the brand that drives the disruption. Offer unique products and services that provide a solution to underserved markets. Do this by staying current on trends and data to understand your potential market reach.
Also, deepen your knowledge of your current customers. What do they want and need that you can provide? Always keep track of your competition to ensure your business is current and competitive.
4 – Effective Marketing Strategy
A marketing plan is necessary for every business. Even when money gets tight, it’s critical to continue marketing in order to reach your target market. But, invest in marketing tactics that work and fit within the confines of your budget. An effective marketing strategy helps protect your business during a recession.
5 – Invest in Smart Strategies and Processes
Build a business that runs well. Any broken or ineffective systems will come to light during a recession. Instead of waiting, take the time now to figure out what improvements are needed to streamline your operations, improve communication, increase profits and free up more of your time.
Work with a Business Coach to Find the Right Solutions
At Alliance Business Coaching, we offer a variety of coaching programs for businesses of all types and sizes. From our group small business coaching to our in-depth Power Up program, we have the right fit to take your business to the next level. Contact us today to schedule a consultation to get you on the road to recession-proof your business.