Make sure your business can survive the recession

As small business owners and self-employed people a recession can be a cause for panic or some sleepless nights. There are ways to minimize the effects of a recession and give you back your peace of mind. Once you survive one recession you’ll be prepared for anything that comes your way.

Your first step should be finding ways to cut costs and streamline your business. Focus on those products or services that are continuing to make money and suspend or get rid of those that are not. Another thing you can do is to get rid of any excess inventory. A third thing you should do is to maintain your prices. If you slice prices to free up cash flow you may cut into your profit margins. You should also not be so quick to offer discounts. Reserve discounts for current customers as a way to maintain loyalty. Another way to maintain loyalty is to focus on service and invest in any employees or subcontractors you have. Your current customers and your employees or subcontractors will be the key to helping you weather the recession. To free up cash flow contact your suppliers to see if you can have payments extended and if people owe you money, it’s time to collect. Renegotiate any contracts coming up for renewal at lower prices and look for ways to expand your business. These few tips may make the difference in how well you get through the recession.