How To Recession Proof Your Business 
 

1. Manage your cash better – cash is the lifeblood of a business so make sure you're on top of your cash flow.
 

2. Diversify your offering – take a look at what you offer your customers and consider how you can offer alternates that are better suited to their financial situation.
 

3. Review your credit and the credit you offer – start asking for more credit from your suppliers and offering less to your customers, this helps improve your cash position and reduces your risk. Plus it's easier to negotiate better credit from a position of strength before you need it.
 

4. Chase ALL outstanding, overdue debtors and make sure you manage your debtors to ensure prompt payment.
 

5. Review all discretionary spending, cut what you can without compromising the quality of your offering.
 

6. Review your customers – typically 20% of your customers provide 80% of the revenue for your business. The other 80% of the customers provide less revenue and are often far less profitable (or even not profitable) to serve. Consider firing some of your customers if it helps reduce cost without hurting your profit. Equally work on building your relationships with the best 20% as you may well be able to offer them more or related products or services.
 

7. Maintain, or better yet increase your marketing – most small businesses cut their marketing in a recession, that's a huge mistake as marketing is what drives new business to you. Note: I said increase your marketing, not your marketing budget – in fact in a recession you can often increase your advertising without increasing your budget as newspapers, magazines and the like are all desperately looking for more business, so take advantage and negotiate hard. The added bonus is that your advertising will often become more effective as there's less adverts for your competitors.

 

Businesses that do well in a recession are those that are able to minimize their costs and maintain or even growing their revenue. In order to do this you need to focus on two key areas:

 

Cutting costs – lower costs mean higher profit margins and/or the ability to offer lower prices without reducing profit margins.

Growing market share – the businesses that do well in a recession are those that invest in their marketing.

 

With WebsiteForge our advanced Search Engine Optimization Technology will help increase your traffic to your site. The more traffic your site gets the more conversions you'll have and profits will increase.

 

For more information on how WebsiteForge can help your business, please contact me.

 

Thanks,

 

Douglas A. Marks

Website Marketign Consultant

888-558-2446 X 208