In mid-November, Goldman Sachs put the odds of a recession in 2023 at a balmy 35%. Just one month later, Bloomberg was reporting a number twice as high. Regardless of whether you’re looking at an optimistic or pessimistic report, the chance of a recession in the year ahead is on everyone’s minds.
If you’re concerned about how a recession will impact your business, here are a few tips to help you proactively prepare for whatever economic headwinds are coming.
1. Trim the Excess and Reinforce the Critical Points
If you want to maintain control in the months ahead, it’s important to set the stage beforehand. This starts by giving your company a once over before slashing expenses and cutting costs becomes a necessity.
Start with an analysis of your budget. Are your expenses justified? Are there easy areas of excess where you can reduce or even eliminate costs? Even little things can add up over time.
For instance, if you can find $1,000 of discretionary spending in your budget (from things like unnecessary travel, an unused Zoom subscription, or even excessive coffee pod purchases), you can save $12,000 over the course of next year.
That isn’t just a nice way to pad your coffers in anticipation of lower revenue. It can also help you avoid more harmful adjustments in the future, like laying off a part-time worker or slashing your marketing budget (more on that in a minute).
2. Focus on Your Strengths
It’s easy to take on responsibilities and spread out your focus as your business grows. Entrepreneurs and small business owners are particularly infamous for wearing too many hats at once.
This waters down your effectiveness and can cripple productivity. Neither of these is desirable even when times are good. During a recession, they can be detrimental to your company’s sustainability.
Take time now, while you still have the flexibility to make smart decisions, to consider where you can refocus your and your team members’ efforts on your stronger talents and skills. Then, consider what you can do to reduce, eliminate, or outsource other responsibilities.
This is where TruLife can be a huge help. We offer a wide range of marketing and distribution solutions that can take the headache out of promotion and fulfillment.
3. Don’t Quit on Marketing
Marketing is a critical part of sustaining a business. And yet, the absence of clear profitable statistics often makes it one of the first areas to feel downsizing when a market correction hits.
Business coach Peter Boolkah points out that this is the wrong attitude to have. In fact, the Forbes Council Member insists that you should market more in a recession.
Why? Because when times are tough, everyone is going to shrink together. This means there will be new customers that your competitors shed as they, too, grapple with shrinking budgets. A recession is a perfect time to steer into your marketing, gain new prospects, and set the stage for explosive growth when the markets correct again.
Staying Upright in a Recession
If you’re concerned about what the future has in store, you’re not alone. Rather than fret in the present and overreact in the future, take the initiative by proactively preparing in every way that you can.
Trim smaller expenses that can add up over time. Focus on your strengths and eliminate or outsource activities that are draining your productivity. Prepare to be aggressive with your marketing, too. That way, you won’t just survive the short-term storm. You’ll be able to thrive when calmer seas return.