How to Recession Proof Your Business

When it comes to recession proofing your business, it is important to focus on the basics. Take the time to hone in on the things that make your business unique, and be sure to not lose sight of your mission. Even in tough times, nothing can replace hard work, dedication and rigor. 

Educate Your Team

You will hear us focus time and time again on building the right team for your business and establishing a culture that fits your business model. Employee morale and customer service standards come from the basics that are instilled in your team from the very beginning.  Make sure not to keep the core values of the company at the forefront at all times, but particularly when times are tough. When a team believes in these values from the onset, the storms are much easier to weather because they know that the company will not stray from them. When you surround yourself with the right people and educate and  empower them, they will be the key to the overall success of the business.

Track Your Budget 

While you should always know what is coming into the business and what is going out, it is more important than ever to build a realistic budget for the company. The budget is a living document that can be adjusted as changes take place, but it should always accurately reflect your income and expenses. Make it a habit to review the budget frequently in order to prepare for any curve balls that might come during a recession. Being diligent in this simple process can save you both time and money in the long run. 

Refocus on Your Customer

The customer experience and your relationship with your customer should always be front and center, but there is no time that is more important than when the times are uncertain. This is the time to deliver an absolute superior experience. If you have taken the time to understand your customer and their needs, it will pay off during this time.  Make sure they know that their relationship is important, and how they are treated during hard times can often increase customer loyalty. When they know your team is in their corner, it provides peace of mind that can only be earned. Make sure you are communicating consistently and transparently, and they will appreciate the effort and it will serve to fortify the relationship in the future. 

Look to Diversify

This is the time to look for new industries or customers that can benefit from what your company has to offer. Look for customers that align with your core values and appreciate the time it takes to build a culture that they can thrive in as well. Take a look at what is working for you right now and look for innovative ways to offer that to others. Ask your current customers to provide testimonials that tell your story. Nothing speaks to a new prospect better than hearing from someone who has already found success in a partnership. Their words carry more weight because they’ve walked in their shoes. 

Build Multiple Revenue Streams

Constantly researching investment partners to determine which ones are a good fit for your business is important because you never know when you will need them most. Develop relationships with these investors and potential lenders now, so that when the time comes, you are ready to approach them and not starting from ground zero. Depending on the size and location of your business, determine if it's best to establish yourself with a local bank that can be more flexible with funding decisions or a large corporate bank that has operations across the country.

Flexibility and adaptability are essential during times of unrest. Maintaining high standards, emphasizing communication and sticking to the basics will help you navigate. Strive to be flexible and adaptable while relentlessly pursuing excellence with hard work and dedication. 

If you’re interested in learning how Scandia can help you to recession proof your business, reach out to us. We are proud of what we have been able to achieve through our thoughtful partnerships and investments, and would love the opportunity to do the same for your business.