In our current, uncertain economic climate, many of us are reminded of our monetary struggles during the Great Recession of 2008. Though it’s hard to think about, all businesses go through financial hardships and need to be prepared if and when the next recession hits. If this is your first time leading your business through tough economic times, or even if you’re a long-time business owner, the expert-backed tips below can give you a better understanding of how to begin recession-proofing your business.
Tip 1 - Keep an Eye Out for the Signs
By watching out for the warning signs of a recession, you can act fast and early to get ahead of things. A couple of signs that an economic downturn may be on its way include dips in the stock market and other investments, along with financial panic as consumers start reacting to the first waves felt by lost income.
Tip 2 - Implement Flexible Contracts
Protect your revenue stream by implementing flexible contracts that will allow you to downscale as necessary. This can include things like long opt-out periods for clients that will give you enough time to prepare, minimising long-term contracts with your own vendors, and offering temporary discounts to your clients in order to incentive them to stay on with you.
Tip 3 - Don’t Slash Your Marketing Budget
Marketing departments are often one of the first cuts business owners make during a recession, but this practice can hamstring your recovery as you aren’t able to connect with your customers. Instead, continue to build trust with your consumers by staying visible, and take advantage of the low advertising costs if you can. Because your competitors are likely going through the same issues, you can also use this time as an opportunity for a new launch or brand repositioning.
To learn about the rest of the 12 tips for recession-proofing your business, take a look at the infographic below. You can also read expert quotes on the topic by visiting the extended article at JW Surety Bonds.