Recession-Proof Your Business

Though we are not out of the woods yet, it does seem that the business climate is slowly changing due to the natural cycle of business.  It's been a rough 4-5 years for a lot of businesses.

Why some businesses thrive while others implode during an economic recession remains a puzzle to many business-owning entrepreneurs.  Not all businesses must suffer during a down business cycle.

An overwhelming majority of my clients not only survived the downturn but thrived as well.  In fact when one of my clients introduces me all the partners say if it wasn't for Steve we'd be out of business like a lot of our competitors.

What separates successful businesses from those that fail during those down cycles? 

They have planned for the future and have contingencies to confront whatever challenges arise.  They organize themselves are uniquely different and healthier approach to business.

An economic downturn can be overly challenging and devastating if you don’t put it into the proper perspective.  A business cycle very closely resembles that of the natural cycles of Spring, Summer, Fall, and Winter.  Let think of a farmer, in the spring he is planting his crop getting ready for a harvest.  In the summer, his crop is growing and begins to harvest his crop.  In the fall he is preparing for the winter that waits ahead. 

Let’s compare my analogy to the business cycle.  In the spring you need to cultivating business getting ready for the growth of summer.  In the summer you are feel great business is great but you understand that fall and winter are ahead so you need to plan.  You need to start paying down debt and save cash for when things slow down.  In the fall you need to begin to get ready for winter.  You need to start cutting the fat.  In the winter we a in survival mode but we begin planning for the spring that is just around the corner.

In the winter you need to look for opportunities to grow.  It’s a fact that during down economic times is when the true entrepreneurs begin to create their wealth.  Down economic times are times in which you can gain market share over the competition.  It’s a great time to grow through acquisition by buy up poorly managed competitors.

Currently we seem to be coming out of an economic winter, a serve one for that matter.  If you did not prepare, how can you survive and get yourself in a position to take advantage of the next business cycle? 

Jack Canfield in his book Success Principles states a simple formula for success that can help us over come this winter business cycle.  E + R = O - Event + our Response = Outcome.  We all have a goal, an expected outcome but some event always seems to come our way to make us lose focus and advert our attention.  That because our response gets refocused on reacting to the event instead of focusing on our desired out come.

ActionCOACH founder Brad Sugars, outlines 5 Steps to how to focus on looking for the opportunities available instead complaining about how bad the economy is.

Step 1 – Get you Mind Set right

If you are focusing on the negative all you will ever see is the negative.  Look for the positive, look for the opportunities that are available.

Step 2 – Set New Goals

The playing field has changed.  You need to reassess where you business is and where you want to go.  Will your current goals still realistically get you to your final destination? Or, do you need to revise your short term goals and strategies?

Step 3 – Get Around the Right People

You need to surround yourself with positive people who share your vision for success. Do you have the right people working with you?  Do they have the skills and the will to help you navigate your business during difficult times?  What about your business associates?  Are they bringing you up or taking you down? 

Step 4 – Create Quite Time to Think of New Ideas

It’s hard to stay focused during turbulent times.  You need to create quiet time each day to focus on your goals to help your mind to focus on what you need to do to get there. 

Step 5 – Planning

It all starts with a plan.  When you have a plan you can now determine what do I need to do or learn to achieve my goals. 

Did your business survive this far because you rode the wave of a good economy or because you have a well run business?  

If you are not sure, not our quick BusinessHealth Check and receive a free report prepared by our team that will give you valuable insights into your business.  www.bizhealth-check.com