How to Recession-Proof Your Business (Part Two)
This topic is important enough to begin with, but add on everything that’s gone down globally the past two years and we’ve got a bit of an urgent situation on our hands. That being said, I wanted to make sure I dove as deeply into it as I could, so here we are with Part Two. If you haven’t read Part One, you can do so here (insert hyperlink under word “here”).
In Part One, we talked all about the defensive techniques needed to protect your businesses finances during tumultuous times, so it only seems appropriate to next discuss those of the offensive. Additionally, a diverse offensive strategy is key to ensuring your business is strong enough to endure any storm it goes through.
1. Prevent rather than react by revisiting older ideas.
The business you know and love today is not going to be the same business you know and love four years from now. Therefore, you need to develop some forward-thinking skills. You may not implement certain strategies right away, and you may actually find that the time spent in limbo serves as perfect opportunities to capitalize on your strengths, be more profitable, scale up, or even revisit abandoned ideas.
Many Ideas Are Not New
Most ideas being pitched at the moment are actually not that new. Usually, when an idea first comes on the scene, it isn’t the right time. In fact, most ideas finding success currently were pitched four to five times over the past forty to fifty years. There are many factors that indicate bad timing, such as:
Exploring an older idea might be a good option if you feel like you’ve tried every other option and none of them seem to be going your way. Revisit it and see what happens. As discussed above, there could be various factors preventing its success, but it might just be that now you have all the right elements in motion and things just fall in place.
Bottom line: You won’t know until you try (again).
2) Evaluate your current business model and make necessary changes.
For service-based businesses, you don’t need a lot of fluff to sell something because, in the very beginning, you’re really just selling yourself. As you grow, build teams, and have bigger and bigger dreams, you’ll have to stop and think about all of the fundamentals of your business in order to scale. One fundamental is, of course, a solid business model. There is a great organizational strategizer called the “Business Model Canvas”. It’s free for small businesses, so I recommend hopping on and making an account – you’ve got nothing to lose!
And if you need a little guidance getting it all set up, they have great instructional videos – plus, my team and I offer a workshop that layers those videos by giving additional info from a service-based business angle so you know how to best use this tool to drive your business moving forward!
3. Diversify your income streams across industries, markets, and clients.
Now is the time to diversify and stop putting all of your eggs in one basket.
Stop being too reliant on:
- 1One client.
- 2The market.
- 3Your industry.
Explore different avenues, different platforms, even different audiences and industries. Having multiple sources of financial flow is one of the best protections against economic/political changes you can have.
Note:
For service-based businesses, there are many easy ways to be diversified. However, if you are just bringing on your first few clients, diversifying can be a bit more tricky. When you get really good at bringing on clients, when you deliver your work efficiently, when you find a system that works well, etc., THAT is the time to look into diversification.
4. Invest in yourself and your team to stay ahead of the curve.
Think of yourself as a version (for example, Leslie 8.0). Your business will take on different forms as the world and technology and life changes. And when it does, you are going to need to evolve with it. I have NEVER seen a case where a business leveled up and the business owner didn’t have to level up with it.
That being said, keep your mind free and open to change. Don’t get stuck in the mindset of “your way or the highway.” New and amazing ideas and ways of doing things come along every day – it’s important that we’re ready to embrace them with open arms.
Bottom line: You need to become the best version of yourself so that your business can follow suit.
5. Invest in people and relationships.
Investment extends far beyond just the financial level. Take the time to build a team culture, lead with integrity, and be as transparent and vulnerable as possible. This goes for your clients as well. Find your tribe, respect them, and build healthy relationships with them.
This includes your stakeholders:
Bottom line: People matter. Embrace the power of entrepreneurship and community!
Wrapping It Up
We covered a lot here, so thanks for sticking around!
It’s crucial now more than ever to spread the message to anyone that will listen that YOU are the most powerful tool in recession-proofing your business. You don’t have to suffer. Absorb the lessons you’ve learned from these last few years, execute the offensive strategies we’ve discussed today, and create a safer future for yourself. With practice and planning, I promise you can do it!
