If you’ve seen or heard the news lately, you’re probably keeping an eye on the recession forecasts. As a business owner, these predictions can be unsettling and discouraging. Will all your blood, sweat, and tears be for nothing due to something entirely out of your control?
While we don’t know what will happen down the road (we’ll leave that to the economists!), we DO know there are steps every business owner can take to recession proof their business. The best part is that these action steps are good practice for all businesses, recession or not.
In this episode, Stephanie shares her top 6 action items to ensure your business will not only survive the unpredictable, but truly thrive.
Let’s dive in.
6 Tips to Recession Proof your Business
- Strategic Planning: include finances in your strategic plan and set clear intentions so you’re able to be proactive instead of reactive.
- Cash Reserve: now is the time to take a hard look at your cash flow and come up with a plan to increase your cash reserve. Have a specific goal and number in mind and work toward that.
- Get Caught Up: Make sure your current finances are caught up so you’re able to organize and create processes that establish stability.
- Diversify Revenue Streams: Brainstorm a variety of ways to diversify your current revenue streams. Work toward a goal of having no more than a certain percentage of your revenue coming from one specific stream.
- Manage Expenses: Evaluate what you’re spending your money on and get clear on the ROI – is the money spent worth it or is it something you should cut or put on pause for now?
- Evaluate Relationships: Understand your contracts and expectations, as well as any potential penalties. Remember there is a human behind every business and building relationships can help if flexibility is needed in the future.
“Having the right processes in place is essential now so that you are ready. We are all about being proactive instead of reactive.” – Stephanie Skryzowski
What you’ll learn in this episode:
- The action steps Stephanie recommends to recession proof your businesses, whether it happens or not
- Why it’s vital to think of your finances as a department within your business
- The importance of not letting fear drive your business and economic decisions
- The how and why each step will set you up for economic growth and stability
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Are you feeling stuck with what to do next to manage the money in your business?
Maybe you’ve logged into QuickBooks once or twice, but got instantly overwhelmed. Or you started to set revenue goals, but don’t know where to go from here. Maybe you simply know that managing your numbers is the right thing to do, but you don’t know what that actually means. Don’t worry, friend! I’ve got just the thing.
Managing Your Business Finances Like a CFO is my brand new 10 step checklist that will help you manage your business like a CFO without making it your full time job.
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