It’s no secret that times are good in today’s economy. With small business optimism escalating to record heights, entrepreneurial spirit on the rise, and overall success for Main Street, a recession is likely the last thing on a business’ mind.

But, if history has taught us anything, it’s that economies rise and fall – fluctuating with the times – while it’s up to small businesses to survive it all.

If you’re a small business that’s just finding your feet in today’s prime economy, here are four tips on how to plan ahead for a possible recession.

Always Be Open for More Work

It’s easy to stop accepting new clients or avenues of growth when business is booming. After all, if the money is there, why take on more work than you can handle? While this line of thinking is understandable, it can be risky to not put your absolute all into growing your business should a time come when customers aren’t so easy to acquire.
If the opportunity for more business is there, take it and hire new employees to handle the increased workload. That way should the economy take a downturn, your business will have the income to carry it through safely, while downsizing staff as necessary.

Don’t Cut Your Marketing Budget

It’s a sad truth, but should a recession arrive, it’s the well-known name brands who will survive, versus the quaint but obscure mom-and-pop establishments.
When money becomes tight, marketing is often the first expense cut from a business’ budget. However, this can cause more harm than good in the end, as aggressive marketing is often exactly what earns them new income.
If you have money to spare, invest it now in solid marketing tactics to keep your business thriving during the hard times. Already have a high marketing budget but are seeing little return? Change things up and experiment, as good advertising should earn back more than what’s put in.

Build Relationship with Your Current Clients

Look at any business study and you’ll see that it’s far easier to sell to an existing customer, than a new one.
With a client who knows you and your business, the trust is there. They’re already satisfied with your service, have agreed to pay your price before, and know what to expect for a returning purchase. To keep coming back simply makes sense for all involved, so make sure you foster good relationships with every customer you deal with as it’s sure to bring good business in the end.
Plus, you never know: one happy experience might mean multiple referrals!

Budget Wisely

Perhaps the simplest, but most effective strategy, budgeting wisely and consistently can be the key to a successful business.
Admittedly, most already operate off a budget, but is yours as tight as it could be? Are you thrifty in all areas, or only a few? While it can seem excusable to make a few splurges during high seasons, downgrading to, say, a cheaper billing software later on in a recession can only bring unnecessary stress and problems.
Don’t worry over what the future may hold, but don’t be caught unprepared either. Plan ahead, start now, and rest easy should the economy change for the worse later.

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