It’s a great time to be in business. While the rest of the world is sleeping or starting to wake up from Covid-19, we should be hitting the gas. Warren Buffett says that “market share is gained in a crisis.” This means some businesses are gaining market share while others are losing market share. How do we make sure that we’re gaining and not losing? How can we recession-proof our business?
Cycles, numbers, and rainy days
- You must know your numbers! I can’t over-stress the importance of this. You cannot recession-proof your business without knowing your numbers.
- In every decade, most businesses have six good years, two great years and two bad years. Prepare in the good and great to survive the bad.
- Have a rainy-day fund (at least three months of expenses set aside).
Have an offense-versus-defense mindset. Are you playing to win, or playing not to lose?
- Create a short-term and long-term plan — and execute it.
- Measure progress with a scorecard.
- Over-communicate and learn to have effective meetings.
Accelerate your growth (hit the gas)
- If your idea of business development is referrals and networking, step up your game. This is not enough.
Create a business continuity plan
- This should include how the company will function in a disaster (e.g. hurricane).
- Include personnel and financial plans for surviving on 25-50 percent less revenue.
Diversify
- While there’s “riches in niches,” don’t put all your eggs in one basket. Some industries struggled during COVID-19 while others were busier than ever.
Upgrade Your team
- This could include replacing some personnel, hiring new talent not typically available or upgrading the skillset of your team members.
- Focus on culture. Culture eats strategy for breakfast.
- Hire for values, train for skillset.
- Improve your processes.
As I talk to business leaders around the country, many are preparing for a coming recession. While this is possible, perhaps even likely, the future can be bright if we’re prepared.
Dive deeper and prepare for what’s next at www.Recession-Proof.biz
Ryan Giles is a CEO, professional EOS implementer, coach and author. He can be reached at Ryan@TractionStrong.com or (504) 500-1640.