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Business Status: Steps to Recession-Proof your Business

By safeguarding your money flow to building your client base, implementing a few practices beforehand will help recession-proof your business so that it survives and even thrives during economic downturns.

Protect Your Money Flow
Cash flow is the lifeblood of your business. Money should keep on inflowing and outflowing for optimal business health, together with the obvious goal being that you bring in more income than you must spend on expenditures.

Notice: It can be admittedly difficult to keep the cash flowing in.

Review Inventory Management
See if anything can be done to reduce your inventory costs without sacrificing the quality of goods sold or inconveniencing your clients. Maybe you’re ordering too many particular items, or something could be sourced somewhere else at a better price.

Is there a drop-shipping option that will work for you so you can eliminate transport and warehousing expenses? Review Inventory Management

See if anything can be done to reduce your inventory costs without sacrificing the quality of goods sold or inconveniencing your clients. Maybe you’re ordering too many particular items, or something could be sourced somewhere else at a better price.

Is there a drop-shipping option that will work for you so you can eliminate transport and warehousing expenses?

Concentrate on Core Competencies
Small business owners frequently simplify the idea of “diversification,” translating it to simply “different.”

Tip: Reduce the extras and concentrate on what you do best that is most profitable.

Simply adding other services or products to your offerings isn’t diversification. At best, it is a waste of time and money.

Acquire the Competition’s Clients
You must continue to enlarge your customer/client foundation if your small business will prosper in tough times.

Provide something different or more than the other guy does. Research your competition and determine what you can do to lure their customers into becoming your clients. How is your competitor’s advertising? Go to their business locations. Ask consumers what they enjoy or don’t like about these companies, then tweak your personal business practices accordingly.

Get the Most out of Current Clients
The bird in the hand is your customer or client, and they’re a chance to make more revenue without incurring the costs of finding new clients.

Better yet, they may be loyal customers, providing you a lot more revenue opportunities.

The key here is outstanding customer service. Ensure that your clients or clients love what you do or market, and keep them happy. Yes, so that the customer is always perfect. Identify their needs, then meet them.

Don’t Cut Back on Marketing
Many tiny businesses make the mistake of cutting their marketing budget into the bone in lean times or perhaps eliminating it, but that is precisely when your small business needs marketing the most.

Consumers are worried. They are constantly seeking to create changes in their buying decisions. Help them find your services and products and to select them rather than others by getting your name out there. Do not quit marketing. Step up your marketing efforts.

Watch Your Credit Ratings
Hard times make it more difficult to borrow, and small business loans are usually among the first to feel the squeeze, particularly for businesses with iffy credit ratings. Monitor yours frequently and stay on top of them.

You’ll stand a much greater prospect of being able to borrow the cash you need to keep your business afloat if you’ve got good personal credit too. And keep in mind that the U.S. Small Business Administration makes easy-qualifying loans available during times of domestic financial catastrophe, in addition to its usual funding programs.

The Main Point
Nothing will make your small business 100% recession-proof, but implementing such can help make sure that your business survives tough times and possibly even profits from them. Everything starts with assessing how you’re doing things today and searching for ways to improve.