How To Recession Proof Your Business In 5 Steps
- Comments: 3
In times of financial concern, I thought it would be appropriate to give some of my ideas about helping your business make it through an economic downturn.
1. Lower your monthly expenses.
-When businesses and individuals are tightening up their budgets, it is possible that your sales will go down. It is best to have lower expenses in order to continue to profit in the case of lower revenue. If there are ways to modify your workflow to lower your expenses, I would recommend doing so. Be especially critical of those fixed expenses that you will have regardless of the total number of sales. Take a look at this article written by Ron Conway that was featured on Techcrunch.
2. Go to conferences relating to your business.
-One of the most important elements of surviving an economic downturn, is having great relationships with those in your industry. One of the best ways to build quality relationships is to meet with others face to face. I truly believe a ‘quality’ relationship is one in which both parties involved, benefit mutually. During a conference, it might even be possible to grab a drink with some of them. We all know that the really great business deals get done, or at least started, over drinks. 
3. Try to pay down as much high-interest, short-term debt as possible.
-This is a not only a good thing to do to help with the monthly expenses, but it will also help you be more flexible. Especially if for some reason you have to make an investment of your capital into your business when sales are low.
4. Don’t be afraid to put in an extra couple hours a night of good old fashioned hard work.
-When the goin’ get tuff, the tuff get goin’. During slow times, some extra hours on the biz each night could go a long way.
5. While you might be working hard, you also need to stay motivated.
-You can stay motivated in multiple ways. However, no other person really knows what it takes to make YOU stay motivated. In fact, my friend Neil Patel wrote a post about it just the other day.
How are you recession proofing your business?
6. Depending on your business, you may need to diversify your client base. In my case, I do logos, business cards, websites etc. for SMEs. Even in recessions, there’s always businesses that make good money, or maybe even more money during recessions. Make sure you keep a flow of revenue from the profitable sectors even during the Recession.
I agree that there are always going to be businesses making money in hard times. Thanks for the comment.
Put some ice on the burn rates indeed. Companies that have cash and are doing everything they can to make it last will have a better time riding out the peaks and valleys. Loren Feldman put it simply: “Make more money than you spend.”
Awesome advice, man!