What is a recession? The technical definition of a recession is when there is a decline in GDP for two consecutive quarters in a row. Generally, a recession happens when consumers and businesses lack confidence that things will remain good long-term and tighten their belts, spending less money. So how can you make sure that your business can handle an economic downturn? Here are a few ways to recession-proof your business.

Build Employees Skills

Make sure your employees are not only good at the job you hired them to do but investing in them and their skill sets. Helping them expand what they are capable of, as well as the services your business can offer, can help your business remain invaluable to your customer base and retain your employees.

Be Flexible

Knowing that everything is not going to go your way every day in your small business is very important. Be ready to work with whatever comes your way and adapt to your business and market changes. Make sure the quality of your work takes the forefront. Embrace new ways of doing things, and it will help you remain resilient through difficult economic times.

Create A Plan (Money)

When it comes to having money and working capital, it is important that you plan for if and when things take a turn towards a recession. Do you have a savings reserve? Do you have a modified budget plan for making cuts if necessary? Do you have a lender lined up if you do need money for your business?

Track Performance

Day to day, you need to be tracking performance and ensuring that you are not overspending based on your business's profits. Tracking your metrics can help you make sure that your business is in the green enough to survive a lull in business that may be long-term.

Invest In Your Customers

Making a great customer relationship will go a long way when consumers decide where they want to spend their money when they start making cuts. For this reason, you should prioritize making them feel valued. You can do this by offering customer loyalty programs and providing excellent customer service.

Become Irreplaceable

Being a business that is a pillar of its community sounds like any business's dream. In order to make sure your business will survive cutbacks and downturns, it is important that your company does become irreplaceable in your community. Offer items, experiences, and services that your customers could not find anywhere else easily. Offering these things at a fair price that is convenient for your customer will make your business irreplaceable.

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