While it’s probably not a surprise to anybody, experts predict a global economic recession within the next year. Covid-19 has caused massive damage to businesses worldwide, large and small, and the downturn is expected to continue. Many businesses are understaffed and having to close temporarily. Others have closed permanently. So how do you “recession-proof” your small business? Here are a few things that can help:

Cut Back

Managing your cash flow and cutting spending is one of the most obvious ways to protect your business when the economy is looking grim. Trimming the fat can be hard when it comes down to it because giving up extras can be inconvenient. Ways to save money include: adjusting business hours to peak times, renegotiate with suppliers and shop for new ones, Move to a more affordable location, and reduce travel.

Retargeting

Some of your best “new customers” are the ones you already have. Investing your effort into maintaining and building a relationship with the customers you already have will make sure your customer base is barely affected by a weak economy. You will be the go-to for your loyal customers.

Staff

Staffing is a huge problem for a lot of businesses right now. The job market is plentiful so making sure your staff is happy is an essential component to keeping your business afloat. Treating your employees well, paying them a fair wage, and rewarding them for going above and beyond will help you maintain a happy work environment.

Add Revenue

Adding revenue sounds like an obvious solution to a money problem, but how do you add revenue? Think outside your current business model and add a new stream of revenue that compliments your business. It can be simple, like adding a delivery option to your retail store, or a little more involved, like adding a bakery to your restaurant. Adding a service or meeting a need you aren’t currently can bring in more customers and help your current loyal customers to spend more.

Secure Financing

Getting money to grow and maintain your business might sound like the obvious solution, but it can be hard to get financing when business is down. When economic downturns start, lenders will typically tighten up their spending and use more discretion when lending. For this reason, you can secure funding now and have a nest egg for when you need it. You can even use it to grow your business now.