RECESSION BEATER-PLAN AHEAD

A recession is a temporary economic decline, and the concern is growing more in 2023 that we will enter into one before 2023 is over. You alone cannot keep it from happening. However, because it will impact your business, you can review and think about ways to make necessary changes to minimize its impact.

Look at the Services You Offer

Should you change some of your offerings or products? Look at what has been successful for your business. In addition, look at what has been more challenging to create sales. Concentrate on what has been more successful and determine how to do more of that business. Sometimes, it only takes small changes to make huge impacts. Remember the 80/20 rule. THE EIGHTY/TWENTY 80/20 RULE

Ask for Help From Your Vendors

Remember, ask for help. So, please look at what you need help with and what helps you the most. Usually, you will find that a lower cost of goods and longer terms help the most in many businesses. Be bold about asking; the squeaky wheel gets the most grease, which is true in most companies. Many vendors expect to get requests during difficult times. This is why you always want to pay vendors on a timely basis. Having a good payment record helps more when times are challenging. Receiving extra consideration can help reduce the difficulties when a recession occurs, Remember, you cannot control the recession, but you can minimize the impact on your company.

Get Your Employees on Board

Any business slowdown impacts your employee just as much as the business owner. Employees should be aware of these facts to contribute to what they can do to help keep their jobs secure. However, a recession is a  temporary economic decline. Note the word temporary. We will all survive this together.

What Happens in a Recession?

• Liquidity can dry up—Banks become less motivated to lend in recessions for fear of not being repaid. Interest rates also tend to fall, shrinking banks’ profit margins.
• Prices can fall—Severe recessions can involve deflation, and a reduction in prices, especially of discretionary items and real estate. Spending focuses on relatively low-priced necessities. But recessions can also be responses to efforts to fight inflation. Consider the high inflation rates we are experiencing in 2023. http://What happens in a recession