7.8.22

5 Business Strategies in the Event of a Recession

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Preparation for a possible economic downturn can position your business to better weather slower growth.

While we’re not in a recession, some financial analysts say the economy could be headed for a downturn. Here are five strategies to prepare for a possible market slump and keep your business financially healthy.

Raise prices

The rising cost of materials and labor as well as the cost of borrowing has led to many business owners raising prices to keep cash flow positive. Use these tips for communicating a price increase with customers.

Secure capital

Unexpected price increases can put small businesses in a financial bind. So can customers who pay slowly. To make it through crunches like these, many businesses secure a line of credit to help manage cash flow.

Keep marketing

A recession is when you want to make sure you stay top-of-mind for customers. Maintain marketing efforts even if the market slows. One of the most cost-effective ways to stay in communication with your customers is through steady emails that provide rich content. Additionally, consider reaching out to customers you haven’t heard from in while.

Audit spending

While it’s always wise to evaluate spending, during a recession it’s critical. Determine what expenses are essential to the functioning of your business. Cut—at least temporarily—any nonessential subscriptions, memberships and other expenses. Regularly review necessary expenses to see if cheaper options are available.

Create additional streams of income

To keep cash flowing, savvy business owners seek ways to generate more income based on the goods and services they already provide. Monthly memberships, educational courses, training and affiliate marketing are just a few ways businesses can generate more income while continuing to focus on their core offerings.

Do you have business banking questions? Contact our knowledgeable commercial loan officers online or call 800-991-2221. We’re also available to help in person at your local Consumers office.

Consumers business services

Do you have business banking questions? Contact our knowledgeable commercial loan officers.

Learn more.

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