6 Tips to Recession Proof Your Business

6 Tips to Recession Proof Your Business

I wholeheartedly believe that adaption will make or break your business during this recession. 

On an average day you have to convince consumers of why they need your products even if your product isn't a necessity. On top of that, people's pockets are being stretched thin, with the rises in gas prices, food and basic necessities, why should they spend their money with you?

These are conversations you need to have with yourself to prepare for what's to come.

With what seems to be a recession upon us, more people will be splurging less, starting businesses, and side hustles to bring in more income.

Why is this a problem?

People who are doing this specifically for the extra income are more willing to settle for less than market price, which brings more competition against business owners like you. 

Let's say you typically sell body butter for $14.99, but Deborah starts a body butter business to make more income and stay afloat during the recession. Deborah decides to sell her body butters for $5. How else can you compete? How can you get customers to choose you over Deborah? 

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So, here's what you can do to prepare your business for a recession. 

1. Adjust Your Product Strategy

Your customers' needs may be changing during this time. Find out what problems they're currently having and how you can solve them. Maybe they don't need "going out outfits" anymore, but they need more work wear because they're working more hours to survive during this recession. 

I'm having a webinar on this soon, join the waitlist >>> here

2. Diversify Your Marketing Plan

Maybe you're running ads, but not seeing much profit from this.

A. Take your ad budget & invest into learning how to market organically.

B. Focus on social media marketing across various platforms more.

C. Focus more energy on email marketing and building off of current customer relationships.

D. Collaborate with other business owners who correlate with what you offer.

3. Keep Your Business Expenses Low

Maybe it's time to be honest with yourself. Maybe your business can't afford the overhead cost of $20-$30+ per month on a website platform. Maybe it's a good idea to switch to a FREE website platform to showcase your business and products. 

 

4. Payment Options

If you haven't already, we're living in time days of BUY-now-PAY-later. If you don't have a few pay-later options available for your customers, get on it now! There's afterpay, sezzle, shoppay (shopify), zip/quadpay, klarna, etc. 

This will help customers who don't want to spend money up front, or don't want to spend their last buying from your store. 

 

5. Create More Income Streams

Let's say you own a boutique, and you need more sources of income, but you don't really want to launch another business.

A. You could wholesale some of your inventory (preferrable outdated) 

B. You could create business starter kits with supplies and resources for money

C. You could teach other boutique owners how to do what you've already done

D. You could sell your old inventory on third-party apps like poshmark

 

 

6. Create a Business Budget 

Know your business expenses upfront monthly. Jot this down.

Have a budget for marketing, outsourcing, hiring help (if needed), inventory, etc.

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Need help adjusting your marketing strategy to keep your business afloat, click here to apply for a FREE call with me!

 

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