Recession proof your business
Recessions are one of the most confronting challenges you may face as a business owner, which may throw you into survival mode at some point.
Your business can’t thrive if it can’t survive so you need to make a plan to recession proof your business.
Economic certainty and upheaval can halt any business’s operations, but you can put plans in place to future-proof your business when faced with a recession.
Let’s look a little more closely…
What is a recession proof business?
A recession-proof business is a broad term to describe a company, business or asset better equipped to ‘weather’ the economic storm throughout a recession.
What happens during a recession?
The first effect a business may experience will be a drop in sales. After that, money will dry up, so a company will tighten their belts, cut costs, carry less inventory and reduce the payroll wherever possible.
How to recession proof your business:
- Prepare for a sales downturn
- Build up business credit. Lending standards rise when recessions hit
- Have financial documents up to date
- Invest in a credit card to relieve strain on your personal credit card
- Stay diligent on payments to be made
- Sales forecast effectively
- Maintain strong relationships with customers. Communication is key
- Know where your business stands financially. Figures give you clarification in a recession
- Keep investing in marketing to attract new customers
- Diversify. Offer new products or services to more target markets
Businesses that re recession proof survive the most challenging times are perceived to be the most productive.
At Drumm Nevatt & Associates Limited, the team will help you deal with issues correctly and ensure you have the necessary information to make intelligent decisions for your business during a recession.
Get in touch today and speak with one of our experts to make sure your business is recession proof.
Streamline Your Business with a Registered Chartered Accounting Firm
Make the call today and trust your finances to our team of Chartered Accountants & Business Advisors