How do you protect your business from the effects of a recession? That’s the question many small business owners are asking these days as an economic downturn continues to build across the U.S. With a recession comes fears of layoffs, business closings, and an uncertain future for those who will be ready to retire soon, and many entrepreneurs are looking for ways to keep their hard work from suffering irreparable damage.
Fortunately, there are a few steps you can take to make your business recession-proof. By focusing on your existing strengths — such as hardworking, skilled employees — you can plan for the future and create some peace of mind. Consider this expert advice from the Adel Partners Chamber of Commerce.
Assess Your Current Business Structure
As a small business owner, one of the strongest assets you have is your business structure, but only if it’s the right one for your needs. Take a look at everything that comes with your chosen structure and consider whether another option might be better. For instance, an LLC will provide you with limited liability protection along with tax benefits that could save you a lot come tax season. If you decide to change your business structure, keep in mind that you can save quite a bit of money on filing if you go with a formation service rather than an attorney.
Get Your Paperwork Organized
Whether you’re changing your business structure or updating employee records, it’s crucial to get all of your paperwork organized so you can easily find and share important documents. Items related to taxes, invoices and receipts, HR documents, and financial records should be up-to-date and easy to access should you need to apply for financial assistance in order to recession-proof your business.
Fortunately, there are several online tools that will help you get your paperwork in order and manage it all, such as an online PDF splitter. You can use this tool to split PDFs into separate documents so that it’s easier to find the information you need.
Make the Most of Your Assets
When it comes to evaluating your business in order to make positive changes, it’s essential to take a look at your employee roster. Who are your strongest workers? Which employees hold the most unique skill set? Holding onto these individuals is crucial for several reasons, Gallup Explains. Not only is it costly to hire new employees and train them, but your strongest workers are the backbone of your business and will help you maintain crucial elements, such as customer service and marketing, even under the threat of a recession. By taking your strongest workers' needs into account and creating an employee-centric culture within your company, you can keep your best employees and build a strong team that will withstand even the most challenging times.
Keep an Eye on Your Competitors
While your existing employees and customers should be a priority at the moment, it’s imperative not to forget about your competition. Keep an eye on the products and services they’re offering, as well as how they’re handling things like social media advertising. Augurian explains that while you don’t have to completely revamp your marketing strategy, it’s a good idea to stay informed and make small changes if necessary in order to stay one step ahead of your competitors.
Don’t forget that acting locally — such as partnering with another small business — can have a big impact on your reach. Recession-proofing comes in many forms, but growing your customer base is a major step in protecting your business.
Make a Plan and Move Forward
Recession-proofing your business isn’t about making just one smart move. It involves several aspects, from assessing your business structure to preparing for your future financial needs to organizing your business documents. With a little planning, you can protect your business and your employees and give yourself peace of mind.
This Hot Deal is promoted by Adel Partners Chamber of Commerce.