With the worsening economic situation and Bank of England warnings that the UK will fall into recession this year, what does this mean for your business, and what can you do to limit the impact?
No one can ever be to sure ‘how long a recession will last’ but what I can say is – the time to recession-proof your business is now!
You can never really predict the nature and course of a recession. However, what’s important to know is that there are ways to protect your company when the economy goes south.
I know a thing or two about surviving and thriving in business during a financial crash and successfully riding the wave that is coming – so in this article I’m going to share with you my experience and top tips for survival.
Here are my top tips for you if you have a business of any type during an economic downturn.
- Remain a level-headed business owner
- Stick to credible news sources and updates
- Audit your existing business model and be ready to adapt your strategy
- Assess your current and target customer base
- Diversify your offerings and buying option
- Pivot to a different business model if necessary
- Sharpen your sales skills
- Ring fence your proactive sales time
- Prioritise building relationships with customers and peers
- Be an entrepreneur that sells with integrity
How To Make Your Business Recession-Proof?
Aiming to make your business recession-proof is a more pragmatic approach than trying to make your business defensive. You need to make it shock-resistant, flexible and prepared to thrive on the ensuing upturn.
1. Remain a Level-headed Business Owner
The good old British motivational posters put out by the government during World War 2 apply as much today as they did back then, keep calm and carry on.
Worrying about what the future holds is human, but doing it 24/7 not only affects your decision making, it also causes stress that can weaken your immune system.⠀
Healthy you, healthy business.
2. Stick to Credible News Sources and Updates
I’ve been saying this since the beginning of the recession: Stick to credible news sources for related updates and try to not over consume unnecessary information.
The same goes for social media. Be sure to stay safe and keep yourself informed, but don’t let the news demotivate you.
There are still lots of people online giving advice who have never ran a business, worked in business, or sold during a recession in their lifetime. These people don’t know how to navigate through an economic downturn. Even if they have made X figures posting pretty pictures online during a buoyant market they are unlikely to know what to do for the best now, for themselves, let alone you.
3. Audit Your Existing Business Model and be Ready to Adapt Your Strategy
Being an entrepreneur in the current climate means you might have to adapt your strategy – So now is a great time to review your business model to assess strengths and weaknesses.
What is working still?
Has any area become redundant due to the consequences of the recession?
What are your clients and customers current main concerns, and can you provide a workable solution to their needs?
4. Assess Your Current and Target Customer Base
Does a large percentage of your revenue come from a small number of your customers?
If so, your business is vulnerable.
If you lose those key clients during an economic downturn, your business will struggle.
Start to make plans now to reduce the vulnerable areas.
Examples include retainer agreements at a discounted rate to prioritise longevity of contracts and a better deal for your client, one to many models (if applicable to your products and services) and improving the customer experience to remain a valued asset to your current and prospective buyer.
5. Diversify Your Offerings and Buying Option
Are you in an industry or niche vulnerable to losses in the current climate? If so, it is time to diversify.
Take some to ‘get out of the bottle so you can see the label’.
Get creative and see the opportunities available.
Really listen to feedback and suggestions from your industry peers and existing community of previous and current prospective markets.
Put simply, meet a market need.
6. Pivot to a Different Business Model if Necessary
Yes, you may have noticed everyone, and her neighbour is pivoting, but only pivot as necessary once you have assessed the above points.
As the saying goes, if it ain’t broke, don’t fix it.
This really does apply to quick pivots in particular; be sure any brand changes are well thought out and researched beforehand.
What I am advising is, don’t panic pivot!
Simple adaptations may be all that are necessary to future proof businesses.
7. Sharpen Your Sales Skills
Do you or your business have a working sales process that generates revenue outside of existing customers, or referrals?
If not, it might be time to equip yourself and your team will new business sales skills.
Working with hundreds of SME’s and corporates, plus thousands of business professionals at the forefront of the last financial crash, a key takeaway was only those who had a newly assessed business sales process survived.
The same will apply to online entrepreneurs this time around.
Your sales processes will likely need tweaks to account for the current climate.
Budgets are tighter, emotions are high and not only will your business model likely change, but your buyers will too.
Being mindful of this when taking your prospective buyer through your own sales process is paramount for optimum customer satisfaction and conversion rate.
You can access my free Sales Swag to get you started or join my FREE Facebook Community where you’ll have access to lots of business mentors and experts, courses and like minded entrepreneurs to help you sharpen your skills.
8. Ring Fence Your Proactive Sales Time
Ensure you or someone in your business is doing ring-fenced sales time consistently.
No fluffing around.
No posting and praying on social media platforms.
No hanging out ‘giving value’ hoping someone will buy.
Real sales time and effective discovery calls to keep your sales pipeline full.
Strategic and proactive selling will get you through this.
If you want to learn more about this then my Sales Bootcamp is the place to be.
9. Prioritise Building Relationships with Clients and Peers
As I always say sales really is just relationships with a transaction. Now more than ever you will need strong relationships with your clients, prospects and peers.
Don’t overlook the powerful currency which is your relationships.
Nurture existing and new relationships to open opportunities and networks, creating strength in numbers and true connections.
We are stronger together, now more than ever.
My free community for freedom-focused entrepreneurs is a great example of a supportive community packed full of business training, resources and interactive live workshops to assist your business journey.
10. Be an Entrepreneur that Sells with Integrity
In difficult times people can lose their manners, integrity and humanity.
In the long run, your people will remember how you conducted your business and navigated through this pandemic – think long term brand association, not quick wins to stay afloat.
These 10 Recession Proof Strategies Are Just the Start
When it comes to business recession strategies there are a number of different approaches to take. Depending on your business, some will work better than others, but the key is having current economic information and analysis at your fingertips. Hiring a business coach or mentor (like me!) can also help you to navigate the tough times, let’s face it, we all need a helping hand in times like this 😊
And finally, try not to bury your head in the sand. We’re still facing some challenging times, but together we can do what we can to keep riding this storm.
There will always be good times and bad times, we must sit this out actively, not passively.
Please share this with any business friends, peers or clients you think would benefit from these recession-proofing tips.
Take care. We will get through this together