Building a “recession readiness plan” before you need one is a sensible idea given the oncoming economic, political, and trade instability.
Increase cash reserve
There are different recommendations for how much cash you should set aside, but the typical range is 6 to 12 months’ worth of running expenditures. Money that is just sitting in a bank and not working for your business is a resource that is wasted. To make sure your money is in the greatest location, you’ll need to balance your budget.
Make sure you’re creditworthy
Make sure to always make your creditor payments on time. Try to arrive early and settle your bill if you can. Your company will receive a good conduct score as a result. Most banks usually utilize behavior scores while making credit decisions.
Examine and assess operating expenses
Trade credit insurance is a highly economical solution to protect your company from the damaging effects of a recession. If any employees must depart, do so in advance of a downturn rather than during. Make sure any layoffs are done carefully so as not to undermine employee morale.
Never, ever stop marketing
Marketing helps build a brand and awareness about your products or services. The more your clients know about your services, the more likely they are to reach out to you for help. Marketing can help push a bigger return on investment for you as a small business owner. So never stop marketing even in a recession.