Planning for a recession can be tough, especially when you’re not quite sure if, when or how it will happen. Having liquid assets set aside for economic downturns can help recession proof of business. Rather than putting aside large sums of money a few times a year, start slow. Put a set amount of your earnings every week into a dedicated account for potential recessions. We will explore your financial options and see if you can benefit from active or passive options rather than having your money simply sit there.
The last thing you want during a recession is unclear messaging that misses the mark and doesn’t resonate with customers. You can recession proof your investment by taking the time to beef up your marketing and brand with clear and compelling messages. In a strong economy, consumers and businesses alike are more likely to take a leap of faith on non-essential goods/services. During a recession, though, their wallets naturally get a bit tighter. Remember, always prioritize features over benefits.
Marketing and advertising are undoubtedly essential as you take your investment to the next level. But if you’re learning how to recession proof your investment, be sure to pay attention to existing customers too. Buying a new customer is more expensive than retaining an existing one. While your business grows, gradually take steps to improve the way that you serve them. By going the extra mile, you not only separate yourself from the competition, but also forge a deeper connection by becoming an essential part of your customers’ lives.
One way that investors safeguard their stock portfolios is by diversifying their hand with various industries. We must apply the same principle to recession proofing your investment. Earning income in more than one way will add new revenue streams to your business. It’s difficult to do shortly after starting a business, but as you grow, diversifying revenue should be a priority of adaptability.
Businesses have countless expenses. In a good economy, these expenses can seem like a small price to pay for a booming business. If you’re learning how to recession proof your investment, though, you need a different mentality. There are other ways to protect your investment during a pandemic that aren’t as expensive as standard tactics. By identifying which expenses are essential, you’re taking important steps to prepare your investment for a recession.
Business tactics aside, managing cash flow with minimal income can be difficult, but remember, you’re not alone. Additionally, don’t be afraid to explore deferring existing debts and/or payments. Many lenders and banks are offering new options to work with those who need them. Before writing these off as necessary expenses and cutting cash flow, be sure to explore your options.
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