How To Prepare For A Down Economy

As a business owner, an economic downturn is a pretty scary thing and can be hard to predict. However, we’re seeing the same trends today that we saw in 2007 and 2008 and this may be an indication that another downturn is on the horizon.  It’s best to be prepared. Here are some things you can expect to see in a recession, and how you can mitigate them: Clients will begin to delay payments. If you anticipate you’ll need access to cash, work with a bank to get a line of credit right away. Companies cut their marketing budget. Formulate your plan B in case you lose clients or you’re let go from your job. Companies with big marketing budgets may look at other options. If your products and services are competitive, you may win their business. Show your clients how your work contributes to their bottom line. Forbes advises that you do the following to prepare for an economic downturn: Manage your profitability; Identify and maintain your strengths and best customers; Be ready to decide what you can stop doing; Manage your liquidity like you do your profitability. If you’re an employee, you should be prepared as well. Share your expert ideas to help your company weather the storm, but you should also improve your skills and make sure your CV and LinkedIn profiles are up-to-date in case the worst happens. Have Your Say Do you think a recession is coming? How are you preparing for it? Tell us in the Spin Sucks Community.  Resources Forbes Article: 4 Ways to Prepare for the Coming Recession  How Virtual Companies Work  Scaling Virtually