Whether we want them to or not, recessions are inevitable in our economy. As successful business owners, keeping our business profitable and trading can be a real endeavor during a recession. But I've put together five of my best tips for making sure your business is recession-proof based on my own experience from the last 2007/2008 recession and plenty of research.
What exactly is a recession and how will it affect your business? During a recession, people are less likely to spend money as businesses are just not growing and, in fact, many are failing and people are losing their jobs.
Business is all about planning. You can, and should, put a plan together that details what actions you and your business will take if and when a recession hits. There are many benefits to this that will help you navigate these difficult times. And you definitely need to get to a solid understanding of your business finances so that you know where and how you can make changes to stay afloat.
A recession can be a good time to experiment with what your business is and what you offer. Being innovative and adaptive to the economic changes can be the difference between success and failure. You might even find your most profitable business venture yet.
Of course, reducing your expenses is something you'll have to look at during a recession. If you have a dedicated office, it could be time to think about either co-working or going fully remote. You can be creative with how you reduce your expenses, especially if you're paying for things unnecessarily.
There are so many ways you can attract new clients to your business, even during a recession, but keeping your current clients happy is by far the most important thing you can do. These people are already giving your business money, so make sure the recession isn't the reason they leave you. Your current clients are the ones keeping you afloat.
But even more important than your existing clients are your team and employees. You should do everything you can to make sure they're happy and as comfortable as can be during a difficult financial period. Team-building activities, a reduction in hours instead of pay (if necessary), and extra employee training can all benefit your staff and give them an extra morale boost.
Is your business prepared for a recession to hit? Do you have a plan to help navigate through a recession? How do you plan to keep your team motivated when a recession hits?
In This Episode:
- What a recession is and how it affects your business
- Why businesses stop growing when a recession hits
- What the benefit of having a recession plan for your business is
- Why you need to know everything about your business's financial status when a recession hits
- How you can be innovative and adaptive to help your business succeed going through a recession
- Why you should look at ways to reduce your expenses
- How to keep your current customers happy and bring in new clients during a recession
- Why your team is the most valuable asset you have, especially when it's hard
- How you can encourage your team to be more motivated through a recession
"It's a recipe for disaster if a recession hits and you're the business owner who doesn't know their P&O." ([7:16])
"When you don't adapt, you die. And nobody wants that. Keep your business modern. Provide services in your wheelhouse that your customer needs." ([9:52])
"I believe that your customers are valuable but your employees and your team is even more valuable." ([15:07])
Are you a female millennial entrepreneur who wants to start or scale your service-based business but not sure where to start? Go to http://www.drcortneybaker.com/10-secrets to get your free copy of the 10 Secrets Female Millennial Entrepreneurs must know before launching their service-based business. Get your free copy now!
About Dr. Cortney Baker… She is an award-winning entrepreneur, researcher, author, speaker, and an advocate for gender equality. As a leadership expert and mother of three, she is passionate about inspiring and empowering women to lead with greatness.
Dr. Baker is the author of the best-selling books: The Ten Do's and Don'ts for Business Leadership: Lessons to Lead Effectively and Unlimited: Conquering the Myth of the Glass Ceiling. She is passionate about helping ambitious female millennial entrepreneurs go from side-hustle to CEOs!
Feedback? Questions? Comments? For more information or to reserve Dr. Cortney Baker to speak at an upcoming event, please contact her at: [email protected] or 1-469-708-8840.