Is your business strong enough to prosper in good economic times—and bad? There are many ways you can prepare to thrive in changing business climates, including the next, inevitable recession. Try these recession-proofing business tips, so you’re ready for anything:
- Plan for high and low cash flow: Get familiar with the amount of income required to run your business. What will you spend more on when you’re doing well? What will you cut back on when times are leaner? Make a plan so you don’t make decisions in a panic.
- Diversify: Let multiple revenue streams support your business, for maximum strength and longevity. Create products or services that appeal to each of your carefully segmented demographics. Brainstorm products/services at several different price levels, with both real-world and digital products. Offer a subscription product or service, offer consulting services, and more. No matter which way the economy goes, you’ll do well.
- Build strong client relationships: Loyal clients (think: loyal following) will stick with you through thick and thin—and help promote your business to others. Cultivating repeat customers is more profitable/less costly than constantly attracting new ones (although you can’t ignore the need for new customers). Continue building brand trust with your best customers, seek their feedback, and show you respect for their contribution to your business.
- Make sure your business performs well on universal success criteria: Everyone should be able to see your business’ value, even if you don’t want to sell. Think about succession and eventually delegating certain day-to-day tasks to others, while you remain the company visionary.
- Stand out with your unique niche: Make your unique selling proposition one that resonates perfectly with an underserved niche in your industry. Tailor your customer experience to suit the chosen demographic–and you’ll be the go-to place for products/services in your sector. Even in a downturn, customers will still spend money with a brand that understands them and serves them well—better than others in the industry.
- Line up financing before you need it: Lending standards tend to tighten up when the economy falters, so get your loan or business line of credit set up now and funds will be there when your business most needs them.
Arrange solid funding sources to help you with all of the above, and to ensure your business will always come out on top. Contact Kasher Capital for funding alternatives to help you weather lean times and recession.