Five Ways to Recession-proof your Business
With the summer sunshine fading, and No-Deal Brexit clouds looming large, it’s easy to become pessimistic about the future, especially when financial pages of the newspapers are full of ‘doom and gloom’ predictions.
Nobody knows precisely what’s around the corner. However, there are a few things you can do to help recession-proof your business:
• Cut your expenses and improve cash flow. During recessions, credit becomes more expensive and harder to access, so the first thing you need to do is determine your current cash flow position and consolidate. Cut costs and reduce debts where possible.
• Call in debts of 30+ days. If you’re owed money and it’s been more than a month since your invoice, it’s time to start collecting what you’re owed. Tightening up payment terms will improve your cash flow situation immediately.
• Find ways to add value. If clients feel they’re getting more bang for their buck, they won’t mind so much if you have to put up your prices. If you don’t, then expect them to start looking elsewhere.
• Cement your relationship with your bank now. If you take the time to cultivate key financial relationships during the good times, they’re more likely to extend a helping hand when things get bad. Speak up sooner, rather than later – they stand to lose too if you go bust, so don’t let pride stop you from getting the help you need.