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What’s Next? How to recession-proof your business

It’s a great time to be in business. While the rest of the world is sleeping or starting to wake up from Covid-19, we should be hitting the gas. Warren Buffett says that “market share is gained in a crisis.”  This means some businesses are gaining market share while others are losing market share. How do we make sure that we’re gaining and not losing? How can we recession-proof our business?

Cycles, numbers, and rainy days

  • You must know your numbers! I can’t over-stress the importance of this. You cannot recession-proof your business without knowing your numbers.
  • In every decade, most businesses have six good years, two great years and two bad years. Prepare in the good and great to survive the bad.
  • Have a rainy-day fund (at least three months of expenses set aside).

Have an offense-versus-defense mindset. Are you playing to win, or playing not to lose? 

  • Create a short-term and long-term plan — and execute it.
  • Measure progress with a scorecard.
  • Over-communicate and learn to have effective meetings.

Accelerate your growth (hit the gas)

  • If your idea of business development is referrals and networking, step up your game. This is not enough.

Create a business continuity plan

  • This should include how the company will function in a disaster (e.g. hurricane).
  • Include personnel and financial plans for surviving on 25-50 percent less revenue.

Diversify

  • While there’s “riches in niches,” don’t put all your eggs in one basket. Some industries struggled during COVID-19 while others were busier than ever.

Upgrade Your team

  • This could include replacing some personnel, hiring new talent not typically available or upgrading the skillset of your team members.
  • Focus on culture. Culture eats strategy for breakfast.
  • Hire for values, train for skillset.
  • Improve your processes.

As I talk to business leaders around the country, many are preparing for a coming recession. While this is possible, perhaps even likely, the future can be bright if we’re prepared.

Dive deeper and prepare for what’s next at www.Recession-Proof.biz


Ryan Giles is a CEO, professional EOS implementer, coach and author. He can be reached at Ryan@TractionStrong.com or (504) 500-1640.

 

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