It’s hard to look at a period of national economic growth as long as the U.S. has experienced without thinking a recession will happen sooner rather than later, and the impact of the coronavirus outbreak certainly looks like a good candidate for triggering one.
But recessions seem to follow a schedule of their own (remember when the trade war was going to trigger a recession?), so it’s always good to be ready for one.
“The time to recession-proof your business is now. Once the economy starts to downturn, it may be too late to turn the ship and make the changes you need to so your business survives, and even thrives, in a worsening economy,” warns Belinda Rosenblum, CPA, and money strategist for entrepreneurs.
She was quoted in an article by Gerri Detweiler on AllBusiness.com, where she summarized six strategies by various business consultants, including Rosenblum. So what should small businesses be doing now before a recession takes hold?
- Take control of your cash flow
- Build multiple revenue streams
- Invest in your client relationships
- Build your business to sell it (though you won’t have to)
- Create a deeper connection by appealing to a particular segment of the market
- Get financing before you need it.