How to recession proof your businessMatt
Over the last decade, the national and international economy has experienced some significant ups and downs. Businesses of all sizes have been affected by the turbulent markets, with a number of ventures failing to make it through the financial crisis.
With the world economy still far from stable, small and medium sized business owners still need to put time, thought and energy into protecting their company from market fluctuations. Though there’s no sure fire way to recession proof your business, following these tips should give your company a better chance of success.
Focus on the necessities
In any recession, some of the first businesses to go are those that sell high end products or provide luxury services.
By creating a business that offers everyday essentials, you can ensure that there will still be a demand for your products and services even when money is tight.
Keep an eye on your budget
When the money is rolling in and business is on the up, it can be all too easy to splash the cash on office refurbishments, high end equipment and flash company cars.
If a recession does hit, you’ll soon realise that the money that you spent on these items would be much better off propping up your bank balance.
Keeping your employees to a minimum is a good way to save money and ensure that you don’t have to make redundancies if a recessions strikes.
Instead of hiring full time members of staff, try looking for part time employees or hire freelancers to fill the gap.
Prepare for the worst
To make sure that you’re not caught out by a recession, take a look at your books and decide what you’d do if you experienced a 10%-20% drop in earnings over a twelve-month period.
By analysing your business in this way you can get an idea of which aspects of your company need streamlining and which are the most efficient.
Research, research, research
By staying on top of your market research and communicating with your staff and customers, you can ensure that you have an up to date idea of what the market really wants.
If your business is offering a product or service that the world wants and needs, you should be able to weather a recession, even when times get really tough.
Recession proofing your company takes time, however is could save you a significant amount of money and heartache in the future. To make sure you’re ready to ride the wave, start working on your business today and make sure it’s as strong as possible for tomorrow.