How to Prepare your Small Business for a Recession
Since a recession is an expected stage in the business cycle, it stands to reason that, as a business owner, you should be prepared to navigate one well at any given point in time. Let’s look at a few key activities that you can incorporate as standard practices to help you reign in the recession anxiety and maintain your momentum with business as usual
Get your mind right. What you feed you find. If you feel and feed fear about a recession you’ll find yourself knee deep in anxiety, making bad decisions from a scarcity mindset and struggling to make positive forward motion. Feed your sense of resilience and “unstoppability” and you’ll find yourself pushing through challenges with confidence, making excellent abundance based decisions, and feeling a sense of readiness - maybe even peace.
Make sure that what you are offering is the solution that your customers need. While consumer spending does tend to decline during a recession, it does not come to a screeching halt. People are still in the market for powerful, transformative products and services that will positively impact their lives. Applying your focus to ensuring your offering stands out amongst the competition, creates incredible impact, and can easily be found by those who need it most is a very effective way to help circumvent the effects of a recession.
Stay on top of your finances. Budgeting and managing spending are not activities that only matter when you anticipate some slower months. Your future self will always be grateful to your past self for the solid foundation they get to work from. Be absolutely certain of your financial situation at all times, avoid late payment fees by knowing and planning for due dates and avoid high interest debts in your business - these are good practices at all stages of the business cycle of course but maintaining them will help you manage through a recessive economy.
Take the time to get very specific and clear about your vision and goals - keep them front of mind, be open and ready to seize opportunities that come your way and have the potential to move you forward.
Remember, while there are of course significant losses that have been sustained during economic downturns, there have been incredible gains made as well! Being educated about what a recession can mean for your business and proactive about taking the necessary steps to set yourself up for success can have a massive impact on your ability to maneuver your small business successfully through this part of the business cycle and thrive.