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Aired on March 27, 2020
Episode 33
7 Keys To Recession Proof Your Business
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To recession-proof your business, diversify income, build cash reserves, retain customers, streamline operations, invest in marketing, strengthen your team, and remain agile and adaptable.

7 Keys To Recession Proof Your Business


In times of uncertainty, it's crucial to protect your business from economic downturns. While it's impossible to predict the future, there are steps you can take to recession-proof your business and emerge even stronger. Let's delve into 7 key strategies that can help you navigate through tough times and keep your business afloat.


1. Diversify Your Revenue Streams

During a recession, traditional revenue streams may dry up. Diversifying your income sources can provide stability and flexibility. Consider expanding your product or service offerings, targeting new customer segments, or exploring alternative sales channels. By diversifying, you can better withstand economic fluctuations and mitigate risks.


2. Build and Maintain Cash Reserves

Having a healthy cash reserve is essential for weathering economic downturns. Aim to build up a financial cushion that can cover several months' worth of operating expenses. This buffer can provide a safety net during lean times and give you the breathing room needed to adapt your business strategies.


3. Focus on Customer Retention

In challenging economic times, customer loyalty becomes increasingly valuable. Nurture your existing customer base by offering exceptional service, personalized experiences, and loyalty incentives. Happy and loyal customers are more likely to continue supporting your business, even when their budgets are tightened, helping you sustain revenue streams.


4. Embrace Operational Efficiency

Streamlining your business operations can lead to significant cost savings. Evaluate your processes and look for ways to improve efficiency, reduce waste, and optimize resource allocation. By doing so, you can trim unnecessary expenses and position your business to operate more leanly, thereby improving your bottom line.


5. Invest in Marketing and Innovation

While it may be tempting to scale back on marketing and innovation during a recession, these areas are critical for long-term success. By staying visible in the market and continually innovating, you can capture new opportunities, stay ahead of the competition, and maintain relevance with your customers. Strategic investments in these areas can pay off in the long run.


6. Strengthen Your Team

Your employees are invaluable assets, especially during tough economic times. Engage your team, provide clear communication, and foster a supportive work environment. Encourage collaboration, creativity, and a shared sense of purpose. By building a resilient and motivated team, you can navigate challenges more effectively and position your business for recovery.


7. Stay Agile and Adaptable

Flexibility is key to surviving and thriving in a recession. Be open to adjusting your business strategies, seizing new opportunities, and rapidly responding to market changes. Stay informed about industry trends, monitor economic indicators, and be prepared to pivot when necessary. Being agile and adaptable can help you stay ahead of the curve and navigate uncertain times with confidence.


To conclude, by implementing these 7 key strategies, you can recession-proof your business and enhance its resilience. While economic downturns can be daunting, they also present opportunities for innovation and growth. By taking proactive measures and staying agile, you can position your business to not only withstand recessions but also emerge stronger on the other side.

Remember, you're not alone in this journey. Countless businesses have successfully navigated challenging times, and with the right mindset and strategies, so can you. Now is the time to take action and future-proof your business. Stay resilient, stay focused, and stay confident. You've got this!

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Biggest Takeaways:

  • If you can get through all of this crisis, the pandemic, and possibly a recession without losing your shirt and having everything go out from underneath you, then you are going to be in good standing. 
  • Do you have an opportunity to diversify? Because the more diverse your income streams are, the more diverse your customer base is. The more diverse your offers are, the better off you are to be able to weather the storms that come with emergencies and with things like a recession or pandemic.
  • The number one thing that can help give you an immense ROI besides business development, is to invest in your skills.

 

Quotables:

  • Don’t stop your business development activities. the activities that you do today, you may not actually see the results or the fruit from your efforts for three weeks, three months, or even three years, but do them.. [Tweet This] 
  • The most overlooked point of where to get new clients being referrals is something that we can all do a better job with. [Tweet This]
  • You can invest in yourself without having to be in person.There’s tons of virtual options, whether that is video. audio or eBooks. There is no limit to how you can invest in yourself and build your skills. [Tweet This] 

 

Highlights:

  • Why sometimes your best move may be to do nothing [00:49]
  • Why you cannot stop your business development activities [03:55]
  • When you need to get creative and diversify your offers. Focus on the potential to pivot [06:34]
  • How to get people to refer ideal clients to you [09:26]
  • The number one thing that can help give you an immense ROI besides business development [11:42]
  • What to do if you are facing a cash crunch in your business [20:25]
  • How to manage your time when you’re entire family is at home because you can’t go out due to the current situation [23:12]

 

Bonus Resource:

Top 5 Secrets To Get To YES – Create a waitlist of dream clients in your coaching, consulting or expert service business. Grab your free copy now. (link to: https://www.susanmcvea.com/YES)

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