5 Ways to Recession-proof Your Business

Changing Times call for New Strategies

Is there a recession coming?  Is it here already?

Ask six different economists and you'll get six different answers. But regardless it’s always a good idea to prepare, especially since the only thing you can truly rely on in business and life is CHANGE.

With this uncertain economy take action now:

1. Cut Costs to increase profits with current sales – Do customers call for catalogs or forms? Cut printing and postage dollars by sending sales sheets or catalogs online in PDF format. Use ezines/e-newsletters like this to regularly contact your customers and keep them informed about new products, sales and company developments, further saving promotional budget monies.
   
   
2. Expand Markets – use the internet to research ways to expand your business using your current resources i.e. products and service offerings. This way you are not spending capital to create new products or services, but making your current products and services work harder for you. How about distributing your product in new geographic areas? Or selling your services over the internet and delivering via low-cost internet phone services like Skype. The web makes it easy to promote to national and international audiences faster and cheaper than ever before. If you are a B2B (Business to Business) seller, why not create retail packages and sell direct to consumers on your own website, Ebay or Amazon.com. I encourage you to not think outside the box – think INSIDE the box – “Your Computer Box ” - the internet can be your ticket to low-cost expansion.
   
   
3. Offer "Budget" Packages – The effects of recession talk can often sway buyer’s mindset about making purchases, so work with that new mindset and create packages of your products/services that are labeled - cutback, budget or economy, this does not mean you are drastically cutting costs – it just appears that way.
   
   You can package your product /service with special access to your Members Only web section that offers full spec manuals, downloadable ad slicks (pre-made ads for your dealers to use) and video or audio (MP3) sales script presentations. Now your product proves to be a better ‘value’ than your competitors. Or perhaps you offer budget billing – customers can pay a fixed monthly price for their yearly contract. It can be set up to automatically charge their credit card on your online credit card processor so neither you or your client needs to bother with invoices or deposits. This saves time and money.
   Many companies that survived The Great Depression continued to advertise and package discounted products and services to their clients. This made them highly visible and more likely to be a major competitor once the economy went back to normal.
   
   
4. Build Cash Reserves – Yes, my accountant told me the same thing. Build cash reserves in a liquid account that is easily transferable to your business checking account. It is recommended between 6 – 12 months operating capital is sufficient. If you have less than that – start building NOW. Do it automatically - have your bank transfer a set amount each week from your business checking to build up that cash reserve savings. Before long it will really add up; giving you confidence and peace of mind.
   
   
5. Remember Successful Companies can Thrive in Recessions – some of the greatest business successes were started during collapsing economies, such as Allstate Insurance during the Great Depression, and during a small recession in 1975, Microsoft was founded by 19 year old, Bill Gates.

You can use the impending recession to sharpen your commerce game and strengthen your business for today and tomorrow.

No matter what the economy does – you will prosper.

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