How to be safe from recession ?
First of all, what is recession?
The answer is a period of global economic downturn, in which the gross national product (GDP) usually declines for six months (two consecutive quarters) or more. Unemployment, stagnant wages, and retail sales are declining. The recession period usually does not exceed one year
Once a recession or recession occurs, efforts are made to deal with it and reduce its side effects in the future. To be successful in business, you need to keep it recession-proof. To protect your business from recession, take advantage of the experiences of business people who have gone through this stage.
Protect Your Capital
"Working capital is the single most important factor in running a business, keeping the door open," said Ayal Lifsh, CEO of lending company Blue Wine. Don't wait until the end, as it did in 2008, because once the recession comes, it becomes more difficult to get loans and capital.
According to Ayal Lifsh, today it has become much easier for small business owners to raise capital. Banks lend easily, while tech startups are expanding their online lending options. Doing (while the future is uncertain) would be a sensible move
Talk to partners
According to experts, in times of recession, when business conditions become unfavorable, owners should talk openly with their partners, suppliers and other partners about the potential impact on the business and talk openly about plans, alternatives as needed. Partners can also be sought. A lot of people are keeping up with the pace of business, which is why the owners want everyone to be on the same page in the face of recession when the recession is over.
Jennifer Early, owner and marketing strategist at Amplified Marketing Services, says: "It's important to talk to your partners and suppliers because you always have to keep up with the pulse of the people who help you run your business. Together with them, you can easily find ways to run your business better and identify them before potential losses occur. "
Think twice about making a big investment "It's a big deal to invest, because the decision to buy new equipment can be economically sound when the business is booming, but it can be a nightmare for the business if the recession strikes," he said. Is. Before making any major investment, ask yourself if it would be better this year or next.
Questions can be something like this:
Do I really need the latest equipment?
Should I sign a long-term real estate or software contract? * Is this the right time to hire more people or should I wait for it?
"If you don't want to expand your business with large debts and repayments, I suggest investing less and spending on aspects that will pay you back," says Jennifer Riley.
Develop an understanding workforce
In fact, when the recession comes, most companies start firing their employees and take more work from less employees. This also affects the performance of the employees while the living conditions of the retiring employees are also affected and they start expressing negative opinions about the company in the market, which badly affects the reputation of the company and the brand. According to experts, it is important to have a workforce that can be trusted and respond quickly when needed. Discuss with your business clients the importance of resource allocation and team training in specific areas and always adopt Plan B, A, and C strategies to get the job done. This applies to profitable situations, but it also has its benefits in recession, because if the responsibilities are performed properly, the team catalyst helps the business move forward.
Current Banking Market
As mentioned earlier, in today's world it is easier to get capital from banks than in the past, so this option can be adopted. Although researchers hope that we will not see another recession like in 2008, it is still important to be careful about where and how you spend and how much money you earn. Because that's the difference between going up in business and falling into a recession.