Unfortunately, I have been telling my friends that this was coming for some time. Well now, I'm really starting to inform my clients about what to expect also. IYKYK! Whether you're a freelancer or own a small business, you've probably been hearing about the recession coming. While people are starting to stop buying cars and houses, it doesn't mean that your business has to stop moving forward. It simply means that you need to change the way you do things and focus on what matters most: Your Customers.
Focus on your customers
Focus on your customers.
Your customer is the one who pays you.
Your customer is the one who keeps you in business.
Offer more value for less
In a recession, people are less likely to spend money on things they don't need or can't afford. So instead of offering discounts and freebies, give your customers something they actually need and want. If you're in the financial services industry, for example, don't just offer a rebate on new policies—offer better coverage at lower prices!
Also consider adding better services or products to your offerings. For example, if you're a restaurant owner who already offers takeout options, maybe now is the time to add delivery too (if it's legal in your area). Or if you sell books online through Amazon or eBay but haven't tried Fulfillment by Amazon yet because it seems too expensive—it might be worth looking into now that there are so many other sellers with whom you'll compete for business!
Create a budget and stick to it
Create a budget and stick to it.
Make sure your budget is realistic. If you don't know how much money you'll be spending, then how can you know when the money runs out?
How to create a budget: Write down every penny that comes into your business, including sales revenue and all expenses--even those that aren't related to running your business (like paying taxes). Then write down all of the things that go out of your business. This will give you an idea of how much cash is available on any given day or week so that you can keep track of what's coming in and going out during each month or quarter.* Stick with it!
Get a Recession Proof Business Funding Plan to make sure you have capital needed to get through the time. (Shameless Plug. Click here to set yours up today)
The Recession (Intro) Lyrics
(NEWS COMPILATION RADIO SKIT) "While the Fed isn't forecasting a recession yet, plenty of other forecasters are and it would hurt. no ones whispering about the R word anymore , now they just come out and say it. the us economy will slip into a recession this year. I think they think they government has failed them.." (Beat Drops) Funny how history seems to ALWAYS repeat itself...hmmmm
Diversify your business
Diversifying your business is a great way to protect yourself from the inevitable ups and downs of the economy. Diversification can be done in many ways:
Adding new services
Adding new products, or
Adding new markets
Spend wisely. We've all heard that phrase before, but what does it mean? In the context of a recession, it means you have to be smart about how you spend your money. It's not just about being stingy and cheap; it's about making sure that every dollar is spent in ways that generate the best return on investment (ROI).
You should apply this principle to everything from marketing to technology to people-related costs like salaries and benefits—and even expenses for things like office supplies or travel costs for business meetings. And if there are any areas where spending needs to be cut back during tough economic times, those are probably places where you can make some sacrifices without hurting your bottom line too much—like taking cabs instead of Ubering around town when possible, getting lunch at home rather than grabbing fast food every day at work, etc.
Cut costs wherever you can
You need to cut costs wherever you can in order to stay afloat. This means cutting staff, reducing office costs and eliminating anything that isn't essential for your business.
If you can't afford to pay staff but still want to keep them on board, consider lowering their salary or making them part-time. If they are skilled at something specific that is key for your business then this may be a good option because it allows them to maintain their income while also allowing more time with family/a new baby etc..
You should also reduce office expenses wherever possible, whether it be by reducing the amount of time spent there or looking into cheaper options such as coworking spaces or shared offices with other businesses who share similar goals as yours - this will help reduce overhead costs while also promoting collaboration within the industry!
And finally remember: if all else fails then there's always bankruptcy!
Dive into the data
Data is your friend.
It can help you make better decisions and identify opportunities, problems, and areas of improvement.
Be sure that you have the right data to make those decisions by asking yourself: Do I have enough information? Is it relevant? Is it accurate?
You're going to have to hustle!
You're going to have to hustle.
You're going to have to work harder.
You're going to have to be more creative.
You're going to have to be more efficient.
You're going to have to be more competitive.
This is a tough time for our economy and your business. But if you can weather the storm and keep your head above water, you'll be able to take advantage of the lower prices for goods and services available now. You make sure you have access to the capital for your business to thrive, set up an appointment with our office to get a Recession Proof Business Funding Plan today! Click here to get started