Proven Ways to Recession-proof Your Business

Good companies and good products are in demand no matter what the economy is doing. The keys to riding out any recession are planning ahead, being willing to listen to everyone within your organization, and paying close attention to their ideas and suggestions.

Recession-proofing a business begins with being proactive. Remember, many of your customers will also be feeling the pinch. Listen for opportunities where you can offer a solution to their problems, i.e., propose different sizes of shipments or offer new product formats. In addition, focus on service. It is one of the best ways to add value without additional cost.

Other companies will follow the traditional approach of laying off staff during a downturn. But employees that are fired during a recession will have to be re-hired when business picks back up, often costing a lot more in the long run. Instead, consider adding employees, since some very talented people may be let go by your competitors. An aggressive approach could add their skills and experience to your organization, probably for less money.

A recession is no time to have high overhead costs associated with servicing high debt loads, especially if the debt was incurred for non-productive purposes. While you are attempting to cut costs, call in favors by asking to have payments to suppliers extended; and,
if you have old debts, compromise them.

If a contract, lease, or other obligation will soon be up for renewal, negotiate a lower price. You may also be able to make cuts; if you don’t need 50,000 square feet of office space, pare down. A recession is a reality check that requires a tough look at your expenses.

Recessions are part of the economic landscape. They won’t be going away anytime soon. The best thing you can do is determine a plan of action and stick to it both prior to and during these
tougher times.

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