Strategies for Recession Proofing Your Business and Finances
A recession presents challenges for everyone, but it’s possible to sail safely through the stormy waters if you make the right preparations in advance. It’s also an opportunity for you to assess your business practices and make them stronger.
Back to Fundamentals
A recession can shine a light on where your business needs to improve. First, look at everything with new eyes and think outside the box. Where are the efficiencies? How could you change your model to improve? Next, you should reexamine your methods. Just because something has always been done a certain way doesn’t mean it’s the only way.
The Value of a Customer
In today’s world, a lot of businesses are purely transactional. Companies have gotten away with poor customer service due to a demand for their services. During a recession that will no longer be the case. If you want to flourish and grow in difficult economic circumstances, building trust with your customers is key. You can do this by being consistent, demonstrating care and displaying commitment in all of your interactions.
Remember the basics: look people in the eye, smile, listen, say please and thank you, and write personal notes. Showing that you care about your customers on a personal level and not just transactional will make them want to refer you to their family and friends.
Three Steps to Grow Your Finances in a Recession
If you want to not just weather a recession but also thrive, you must get your finances in order. Make it a number one priority to build up your reserves – at least three months for personal and six for business. You may think this may be difficult but if you review your monthly budget you may find places where money is being spent on services that you no longer use. And just cutting back a little bit on the “extras” will help plump up your coffers as well.
In turbulent times, the first thing you need to concentrate on growing is yourself. As Benjamin Franklin once said, “An investment in knowledge pays the best interest.” From the books you read, to the coaching you take, to the training you undergo, self-education is the key to growing yourself – and your business, too. Remember, only the very best real estate professionals will succeed in a recessionary market.
If you want to increase your net worth, you need to invest. You need to grow your business at a higher rate than the rate of inflation. For example, if inflation is at 8%, aim to grow your business by 10%. If you can defeat inflation, then you can defeat the recession.
Get advice from trusted professionals, put a system in place and then stick with it. The key to success is to have a safe-money strategy, a real-estate strategy and a stock strategy. When all three of these are in place, you’ll win over the long-term.
You Don’t Have to do it Alone!
Thinking about running your business during a recession can be overwhelming. That’s where Buffini & Company can help. Our Business Coaches will work with you to strategize pro-active steps to keep you focused on your goals. They will be with you every step of the way – assessing your methods, offering suggestions for improvement and encouraging you when you hit roadblocks. Coaching has worked for thousands of our customers for the past 25 years, including during several prior recessions. Sign up for a consultation today. We’ll not only help you breeze through the recession, but we will also position you for continued success after it.