Recession Proof Your Small Business
The economy is a fickle beast. We can’t stop it from changing, but we can make sure that we are prepared for whatever comes our way. That’s where The Timely Entrepreneur Resource and Research Centre comes in! We’re going to give you five tips that will help your small business be recession proof:
A recession is a period when the economy declines. This can happen because of the rise in interest rates, unemployment and inflation. A recession may also be caused by external factors like war or natural disasters. When this happens, businesses suffer from decreased demand for their products or services which result in lower profits or losses for them during that particular period of time.
During a recession, many businesses fail because they did not prepare themselves adequately before it occurred; however, if you want your business to survive through any economic downturns, then it’s important that you take some steps now so that when things do get tough financially later down the line, then at least there will be no or few surprises!
Planning ahead is crucial for any business, but especially for small businesses. When you’re planning ahead, you have the opportunity to be prepared for any event — the good, the bad, and the ugly! You can also take advantage of opportunities that come your way and be flexible enough to change course if needed. Planning ahead helps you to be more efficient and effective in all aspects of running your company so that it continues running smoothly even when times are tough.
- Work less, work more valuable work.
- Focus on quality over quantity.
- Don’t be afraid to spend money on tools, resources or even Entrepreneurial Programmes like those offered at The Caribbean Institute for Entrepreneurial Development, that make your life easier and more productive!
You’ve heard the saying, “It’s not the size of the dog in the fight, but rather the size of his bank account.” That’s because when it comes to financing your small business, it’s all about who you know and what they can do for you. If you have a good relationship with a local bank or credit union, get them involved early on in your business plan process and be sure to ask them what kind of help they can offer right now. If not, there are other options out there that might be more appropriate for your situation. For example:
- Borrow from family members (if possible)
- Seek out friends in high places who could refer clients or provide advice on how best to structure an investment deal
It will also be worth your while to build stronger relationships with the key stakeholders in your business – those persons such as your suppliers and your accountant. You will definitely need their help later on.
Don’t let yourself be caught in an economic downturn unprepared.
You should always be prepared for the worst-case scenario. It’s not as if you can predict when a downturn will occur, but you can prepare yourself and your business to survive it, if it does happen.
By doing this, you will have peace of mind knowing that no matter the economy or market conditions, your business will still be around for many years to come!
We hope this post has been helpful in helping you prepare for an economic downturn. Although it’s impossible to predict exactly when a situation will occur, there are steps that you can take today to make sure your business is ready when something happens unexpectedly. The most important thing is to think ahead and plan for what might happen in the future so that when it does, your company won’t be caught off guard!