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How to Prepare Your Small Business for a Recession

Updated: Nov 30, 2023


By Brianna Dick

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Getting less client calls, outreach and overall business can feel scary and it's pretty easy to spiral into, "What the hell am I going to do" I've spent the past few months studying the economic forecast for this quarter and the next year. A recession is coming and our sector will feel it the most, regardless of follower count, location or current client amount. That doesn't mean the above factors won't help, but now is the time to prepare an action plan to insulate your business from serious slow down.


Below you'll find two recent articles that briefly address the slowed GDP in this quarter and what the future may hold. So, in lieu of reacting to a potential downturn in business, I'd rather you be prepared.



ACTION ITEMS TO GET THE BALL ROLLING:




1. Financially prepare for a 25% decrease in overall business. This can look like, stopping any expansion plans, curb hiring, and taking inventory of current overhead costs or other business related costs. Run as though your business will lose this amount over the next year. If worse comes to worse and there is no slow down, at minimum you're prepared.



2. Have a plan in place for the months where things feel slower: You may need to increase ad spending, offer discounted services, or be more flexible in scheduling to make yourself more available to clients. You can also do things like reaching out to local rescues or rescue groups and offer discounted services, joining local Facebook groups and Nextdoor to offer services where you normally haven't or wouldn't.



3. Secure financing while you don't need it. Whether you use your FEIN to get a business credit card or request higher limits on your credit cards, this is an area often overlooked. Sure, it's not ideal but at least you'll have a line of credit as a back in case.



4. Start building recession proof services that are low cost and low stakes to consumers. Whether it's a $25 e-book or webinar or online training at a lower cost or even a weekend seminar that is a complete steal, make it palatable to someone who will have to stick to a budget. This can also look like accepting financing options, especially for trainers who offer board & train programs.



5. Keep a pulse on your community and audience. Make sure you're keeping up to date on not only the global economy, but your audience as well. There will be some communities affected greater than others.

 



 


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