Many financial experts are predicting a recession in 2019. While it’s impossible to predict with 100% certainty that there will be an economic downturn, small business owners can still be prepared.
Steps to Recession-proof Your Small Business
Should a recession happen in 2019, there are some steps you can take to make your business less susceptible. It’s like a seat belt on a plane – a safeguard in case of an unlikely event.
Press Pause on Large Investments
Now is not the time to spend money on luxuries. Identify the things that help your business thrive and grow and spend your money there. Be conservative in your spending now, and if a recession doesn’t happen, you will have more to invest later.
Utilize the Team You Have
Wages are expected to rise in 2019, and there is a potential recession on the horizon – not a great time to make lots of new hires. Find ways to maximize your current team’s work capacity and reward them in creative ways for their contribution. If you must hire new people, consider hiring contract workers or freelancers.
Apply for Working Capital
Don’t currently need extra money for your business? That’s great! The best time to get funding is when you aren’t desperate for the money. Apply for a line of credit and draw on funds if needed. This way, you have money available to you if required, and you aren’t applying for working capital when things are in a downturn.
An impending recession can be frightening, but with a little planning, you can be better prepared to weather a slower economy.