11 Ways to Beat the Recession (So It Doesn’t Beat You)

First a global pandemic and now an economic recession. Is your business worn out and weary of trying to survive back-to-back global challenges? Does it feel like another kick when you’re already down?

If so, you’re not alone. But fortunately, surviving the economic recession doesn’t have to leave you stressed out and stranded without a plan.

If you’re like most business leaders, the economic recession is definitely on your mind.

And whether your company is facing a recession for the first time or battle-scarred from numerous recession cycles over time, there ARE things you can do to not only survive this seasonal rough patch but actually help your business come out ahead.

How to Beat the Recession (So It Doesn’t Beat You)

Cultivate a healthy perspective. Remember that recessions are often opportunities for business growth. In fact, a recession can be healthy if you have the outlook that what you lose, you can gain back exponentially in time. And oftentimes what you gain back is actually better for your business because it’s a second opportunity for success.

Manage within your own hula hoop. Since you can’t control what goes on outside your business, try not to spend too much time on it. Take this time to evaluate and change what’s in your sphere of influence. Devise new ways to strengthen your teams, provide relevant solutions to your loyal customers, and realign with your company’s mission.

Tune out the recession noise. If you can maintain 75% of your clientele, you can tune out the noise of the recession around you. Just stay in your lane and focus on the work you can do today to keep those customers happy. Work within your own bubble and focus on strengthening your own business economy.

Refine your processes for efficiency. Don’t get caught up chasing revenues. Instead, look for ways to create other efficiencies within your own company, like in operations or back-office support—decisions that can have a positive impact on your bottom line. Use those savings to invest in marketing and continued growth in any way you can. Re-evaluate what’s working and what’s not working, cut your losses, and strengthen the areas of your portfolio that need more heft.

Create flexible budgets. Budgeting is simply goal setting. Don’t get intimidated by doing it right, simply focus on doing it more. When your budget is flexible, so is your company as a whole. Bend where you can, but don’t bend where you shouldn’t. Most experts believe that it’s important to always pick up good talent and never stop marketing.

Do right by your customers. Customers won’t call until there’s a problem, so take the time during the recession to build a brand they see, know, and remember in their time of need. Live out your brand. Communicate with customers. Listen to their problems and try to turn each existing “no” into a “YES!” Develop your unique niche. And try to meet needs that your competition can’t. Not only does this strategy keep your customers coming back for more, but they’ll also gladly refer you to their friends.

Market deep, not wide. While you should never stop marketing (even during a recession), you certainly can change how you market and whom you market to. Try focusing your marketing on your current customers—offer bundle discounts, referral deals, and other incentives. You can streamline and maximize your marketing through face-to-face conversations, referrals, loyalty discounts, and showcasing your completed work with pride (send direct mailers that say “We did this!”).

Protect your relationships with vendors. While the supply chain is still strained, you need your vendor partners more than ever. Be the nice one. Don’t beat them up about their prices. Talk to them about what’s going on. Continue those regular phone calls to maintain communication and a good relationship. When they need to make tough decisions based on a tight supply chain, you’ll be one of the partners they’ll want to satisfy. Your good relationship will pay off in spades.

Consider acquisition. If your company is provided the opportunity, consider the acquisition of another company or franchise in a “dirty job” space that’s often recession- and pandemic-proof. Even during a recession, there’s always a need for dirty jobs and services—by expanding your business with these services, you’ll increase your revenue stability.

Take care of your teams. A positive work culture in your company is crucial during a recession. Empower your people every chance you get. Support your employees’ mental health, listen to their suggestions and needs, and be transparent about company decisions. When you can attract, retain and allow people to grow with your company, they will be forever aligned to your mission and prove to be a productive workforce.

Better position yourself before the next recession. Companies that survive and do well during recessions are usually the ones that have a stockpile of cash. You may not be able to do it immediately, but when the market turns around, build up your reserve funds so you’re more confident going into future recessions, pandemics, or other unforeseen global challenges.??

Now It's Your Turn

What do you think?

Which of these do you need to add to your strategy to weather the storm?

Let me hear from you in the comments below!

By the way: If you want to hear from other seasoned business leaders on how they're navigating the current market, make sure to check out the replay of this private, invite-only session with me and John J. Holt, COO of Planet Fitness Holidays, and Ellen Rohr, President of Zoom Drain Franchise.

Their insights are unusual (to say the least) but highly informative, instructional, and inspiring for business leaders at any experience level. For a limited time, you can watch the replay of the live event here.