Written by: Vanita Lee-Tatum, Executive Contributor
Executive Contributors at Brainz Magazine are handpicked and invited to contribute because of their knowledge and valuable insight within their area of expertise.
Let's admit it! Running a business is not that easy. Hardships and adversities are part of the process, especially when you own a small business and are working hard to take it to the next level. With inflation on the rise, experts predict the US economy is headed for a recession in 2023. While the economic turndown significantly impacts small businesses, there's also an opportunity to thrive amid economic uncertainty.
Below are a few things you should know to recession-proof your small business in any financial climate.
Reduce expenses
Cost-cutting is one of the strategies businesses implement amidst an economic crisis. Just as companies did during coronavirus, cutting down expenses that are not required for day-to-day operations would be a rational decision. Cost-cutting could include tuition reimbursement, travel expenses, etc.
Capitalize on your core competencies
Understanding what you do well is a must. It helps a lot, especially during times of a tumultuous economy. Many businesses end up making the mistake of simply adding products or services for the sake of doing something new. That could be a decent idea, but not during a recession. Instead, you should focus on your business's unique and essential strengths. Demonstrate the relevancy and quantified value of your business, which sets you apart from the competition
Effectively manage cash flow
Managing your business's cash flow is challenging during a crisis, but that's where you can play smart. Work with your banker to access cash flow resources, such as a small business credit card or a line of credit, to fill gaps with receivables. Implementing effective cash policies, using online wires or ACH to send and receive payments, etc., are some of the ways to manage cash flow effectively.
Strengthen relationships with existing customers
Your existing customers can save you in times of crisis because they are the ones who are familiar with your products and services. Focus on retention and deliver value through service. If your existing customers know that you care for them, they will be your loyal customers. They can also recommend your business to their family and friends. Never be afraid to ask for referrals!
Enhance digital marketing capabilities
Businesses that have a credible digital presence will never go away! While the economy may be slowing down, online engagements are moving faster than ever. Make sure your business has a solid digital marketing strategy. Your mindful digital marketing strategy helps your business stay relevant and remain competitive.
All in all, your business deserves to flourish regardless of the financial climate. Focus your strategy on innovating, adapting, and growing.
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Vanita Lee-Tatum, Executive Contributor Brainz Magazine
Vanita Lee-Tatum is a world-class business developer and strategy consultant, specializing in helping organizations and individuals grow their business potential. Drawing on her own experience as an entrepreneur and her financial skills honed as VP of Banking, Vanita inspires and ignites business owners to create financial growth by teaching them the business development skills needed to flourish. Dedicated to making an impact by sharing her knowledge and expertise to encourage business owners and entrepreneurs of all types, Vanita is a positive force of nature who clients and partners enjoy collaborating with.
