Ready to ride the storm?

If you feel you’re being bombarded by words like slowdown, downturn, recession, and countless doom and gloom reports over the future of the economy, you’re not the only one. The latest report we came across was predicting that the economy is set to experience its weakest period of growth in 15 years and was at a risk of a recession in the next two years. What a great start to the year!

Despair not. While economists are busy predicting the future, here's some advice to get you ready:

  • Leverage your strengths: as a small business you are inherently more flexible than your larger competitors. Responding quickly to your customers' needs and supplying a personal service to them will give you an edge.
  • Plan for the worst: analyse in advance where & when you'd need to make changes if your revenues were to significantly drop.
  • Manage your cashflow: stay on top of your balance sheets and cash flow statements. This will help you manage spend and spot important trends.
  • Manage your invoices: keep detailed records of what is owed, by whom, by when and chase them on a regular basis.
  •  Pay what you owe: take a flexible payment plan that allows you to share the risk with your creditors and ideally enables you to pay them after you’ve been paid without meaning you’ll be late. 
  • Stay close to your customers: stay loyal to your most valued ones, understand their pressures during this period, and work to ease them. Listen, as there might be an opportunity for you to provide a service you hadn’t previously thought of. Remain flexible and open to change.
  • Stay close to your staff: your people are your best asset and it's especially important to support and listen to them during this period when morale can slump.So, communicate, motivate, reward, and ensure you continue to retain the best.

Finally, for the Thinkers among you in need of a business idea, recession-proof industries are a good place to start looking for new opportunities.

Have any more tips on riding this storm? share them with us!

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