1. CUT BACK ON UNNECESSARY EXPENSES
If you don’t absolutely need it, don’t buy it. Take a look at your finances and determine where you can trim some of the extra spending. If you’re seeing the signs of a recession, the sooner you cut expenses, the better. Put aside the money you save from cutting expenses early, so you have a reserve to rely on if you need it in the future.
2. INCREASE BUDGET FOR MARKETING
Now this might seem counter-intuitive after we just advised you to cut expenses. However, when a financial crisis hits, many businesses make the mistake of eliminating their marketing and advertising altogether. When businesses do this, it’s like taking the gas out of a car and expecting it to go the distance. Marketing can give you a competitive advantage to attract new customers and retain current ones.
3. CREATE AND FOLLOW A STRATEGIC PLAN
Even if you are a small business, you need to have a strategic plan if you want to survive a recession. If you don’t currently have one, now’s the time to create one. Ask yourself these questions:
What are the top priorities for the business in the next 3, 6, 9, 12 months?
What resources do we need to accomplish our strategy?
Who do we need to effectively execute on these plans?
What is the goal of our efforts?