HOW TO RIDE OUT THE RECESSION

PLAN AHEAD - THE BUSINESSES THAT DO BEST DURING THE RECESSION WILL BE THOSE THAT HAVE PLANNED AHEAD. EVEN IF THINGS SEEM TO BE GOING WELL, YOU SHOULD ALWAYS HAVE A ‘PLAN B’ PREPARED IN CASE SOMETHING UNEXPECTED HAPPENS. THINK ABOUT YOUR COSTS AND START CUTTING BACK BEFORE YOU ACTUALLY START LOSING MONEY.

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t the same time, businesses should already be preparing for recovery. It may not seem like it now, but the recession won’t last forever so use this time to get ahead.

BEFRIEND THE BANK

Make an effort to have a good relationship with your bank. Don’t try to keep secrets from them; your bank can only give you good advice if they are fully aware of your financial situation. Don’t assume that your bank will be able to lend you money when you need it, find out where you stand with them before it’s too late.

It is a good idea to apply for loans and credit while your business is thriving - don’t wait until you’re already in trouble.

THINK ABOUT YOUR STAFF

Check your employment terms and conditions so that you know where you stand with your

workforce. Identify the essential members of your team and cull under-performers as soon as possible. This may be difficult but it could save your business. It may be possible to ask your employees for suggestions on making staffing reductions. Cutting hours rather than people is often an easier option.

A recession can provide a great chance to snatch highly skilled employees that are out of work or insecure about their company’s future. Take these opportunities when they arise!

DON’T STOP MARKETING

Scrutinize your marketing budget, make sure you’re not wasting money and cut out unprofitable advertising - but don’t stop marketing or advertising altogether! Eliminating marketing is the worst thing you can do during a recession as it can bring in new business, yet it is often the first to go when times get tough.