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3 Recession Proofing Business Measures to Survive Economic Downturns
No one knows when the next recession will hit, but there are signs that it may be coming soon. A recession is a time when businesses need to be especially cautious. That’s why you have probably seen many companies starting to share recession-proof business ideas to help brace for an economic downturn.
If you’re a small-to-medium-sized business, it’s essential to take the necessary steps to prepare yourself.
Recession-proofing your business will help you build the resilience you need to withstand hard times and be better positioned for success.
This blog post will discuss three steps you can take to ensure your business is ready for a recession!
What are the Risks of Not Bracing for a Recession?
Since 1945, the U.S. has had 13 recessions. Recessions are an unfortunate economic situation, and many managers experience a few in their careers.
Small-to-medium-sized businesses need to take the necessary steps to prepare themselves for a recession.
If you don’t brace for a recession, your business is at risk of going bankrupt. Over 60% of companies that go bankrupt do so during or immediately after a recession.
A recession can also cause a decrease in consumer confidence. People worried about losing their jobs are less likely to spend money on non-essential items. This decrease in spending can lead to a decline in revenue and profit for businesses.
Furthermore, your inability to help existing customers during economic uncertainty can lead to them losing their business and cutting your revenue. It would be best if you didn’t focus solely on your well-being during an economic slump but also on the well-being of your existing customers.
[Learn More: How to Sell & Market in Times of Uncertainty]
Businesses must prepare to survive, and perhaps even grow, during the upcoming economic downturn. If not, there is a chance your business, employees, and even customers will be hung out to dry when you have all the tools and insights you need to come out of an economic recession stronger and in a better position than before.
3 Steps to Effectively Recession Proof Businesses
So, what can businesses do to recession-proof themselves and ensure they are prepared for an economic downturn?
There are many different recession-proofing strategies, but we’ve narrowed them down to three essential steps:
Step One: Get Your Data Plumbing in Order
One of the most important steps you can take to recession-proof your business is to get your data plumbing in order.
Much like the plumbing in your home, things can get MESSY if your company’s data plumbing isn’t set up appropriately. When BrainSell works with clients to address data plumbing concerns, we ensure clients can quickly and efficiently extract data from their various sources — like their CRM, ERP, Marketing Automation, Customer Support, etc. — and make insights from that data easy to digest.
From there, you can assess your information in simple dashboards that provide real-time insights for accurate sales forecasting, visibility into financial health, changes in how your products and services perform, trends in client impact, and more! Clear visibility into each aspect of your business is vital to making strategic business decisions to keep providing customers value in uncertain times.
[Learn More: 6 Steps to Becoming a Data-Driven Organization]
Step Two: Invest in Digital Transformation Now!
Another key step to recession-proofing your business is investing in digital transformation. In today’s digital world, businesses must be agile and adaptable to survive. Research from Deloitte shows that companies with high digital maturity report industry-leading profit margins.
When we say business leaders should digitally transform their business, we mean investing in technologies that will help you streamline operations, reduce costs, and improve your customer experience.
By doing so, you’ll be better positioned to weather a recession – and emerge from it stronger than ever.
[Grab Your Copy: The Digital Transformation Playbook – 5 Components to Growth & Scale]
Step Three: Augment Your Workforce with AI
Lastly, you should consider augmenting your workforce with artificial intelligence (AI). As businesses look for ways to do more with less — whether due to budget cuts, hiring freezes, or even layoffs — AI can help you automate repetitive tasks, free up your employees for higher-level work, and improve your bottom line.
For example, let’s say you run a call center. You could use AI phone tools like Aircall to automate the task of routing calls to the right agents. Or you could use AI virtual assistants like Conversica to handle common customer inquiries, freeing up your agents to handle more complex calls. Even unique AI like Robotic Process Automation (RPA) can help you automate tasks like data entry or invoicing.
AI can help you automate tasks, improve decision-making, and drive efficiencies across your business. And when used correctly, it can be a powerful tool for recession-proofing your business. Investing in AI now will help you survive a recession and thrive in the years to come.
[Watch Now: What the Heck is Robotic Process Automation?]
You’re Not Alone! Chat with BrainSell for More Recession Proof Business Ideas!
Recession-proofing your business is essential to ensuring its survival during tough economic times. Our three steps will ensure you have the data, technology, and resources in place to come out of any global financial meltdown with little to no damage to your growth initiatives.
Thankfully, you don’t have to go it alone! If you have any questions or need more recession-proofing ideas, don’t hesitate to reach out to us! We’re here to help.
Brian Anderson joined BrainSell as the content marketing manager but unknowingly became our in-house troubadour as well. Brian’s ability to generate high-quality content and continue to develop the BrainSell voice is unmatched.View Posts
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