#210 How to Recession-Proof Your Business
Today’s topic is very close to my heart: recession-proofing your business.
If you’ve listened to my story, you know my first business got wiped out by the Great Recession of 2008.
I used to carry a lot of shame about it until a good friend of mine made me see the light. I didn’t fail my business, it got taken down by the recession.
This isn’t something to feel bad about, it’s something to learn from.
But there were some things I could have done to that might have saved my business. Like they say, hindsight is 20/20.
I’m no economist, but things are shifting. Small boutiques are closing down, wholesale is slowing and sales are moving online.
While other business owners scramble to react to these changes, you can prepare in advance and stay calm when chaos hits.
In this episode, I cover six things you can do to proactively protect your biz from the worst-case scenario.
Listen to episode #210 of Thrive by Design to get your all-access pass to How to Recession-Proof Your Business.
Diversify Your Revenue Streams
Don’t keep all your eggs in one basket, especially if that basket is wholesale.
Don’t get me wrong, wholesale is still relevant. But if the economy softens and retailers cut back their ordering, or worse, close down…. you’re fresh out of luck, m’dear.
Everything’s moving online nowadays. I think the most important thing you can do is train your customers to buy from you online.
Direct-to-consumer sales through your website or e-commerce can be a serious source of income for you and will be less impacted by the turbulent ups and downs of the economy.
If you’re not actively growing your online sales (or don’t know how) its time to start!
Get Rid of Extra Inventory
Inventory is like cash. Cold, hard cash. And the biggest mistake I ever made was having a ton of inventory on the shelves.
Good news, though! There are a lot of fun and creative ways to ditch that extra inventory while still making a profit.
My personal favorite inventory reduction strategy is to host a sample sale. Even if you’re selling for 50% less than what you bought it for, that’s better than it sitting on the shelf collecting dust.
There are so many more ways to clear your inventory, and I cover a lot in this episode. Get creative! People love a good bargain.
Set Some Cash Aside
Why are so many business owners and entrepreneurs broke? Too many just neglect to set money aside in their business savings account. This is 100% avoidable, people!
Saving 3% to 5% a month is all it takes to stay ahead of the curve.
Plus, every business can reduce their expenses. I regularly run an audit on my business expenses, and there’s always fat to trim.
If it doesn’t save you time, help you automate a process, teach you something that you didn't know, or give you insight into a problem… cut it!
Hire an Awesome Mentor
There’s one part of your business expenses that should not get cut, and I believe this with all my heart (and I practice what I preach!): a good mentor or coach is ALWAYS worth the money!
This is the final piece of recession-proofing your business (and I go deep into why in the podcast.) Hire a mentor before shizz hits the fan.
Maybe you get a little woozy when you see the cost of mentorship and coaching. But the lifelong ROI that comes from education and guidance is SO much greater than you can imagine!
Whether you’re a fast-paced person like me, or more of the careful, methodical type like Robin, the lasting benefits of consultancy and help are worth it.
Before I go, I just wanna say: you got this! Take your business by the reins and be proactive about making it recession proof!
See you next week,
xo, Tracy
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Links:
Train Your Customers to Buy From You Online Application
Inventory Management Strategies to Increase Cash Flow for Independent Jewelry Biz Owners
14 Ways to Reduce Excess Inventory
The Surprising Way to Turn a Profit Every Year (even if your sales are slow)
How to Create a Beautiful Branded Photoshoot on the Cheap, with Karina Harris
