The economists are beginning to say it out loud: the signs are gathering for a recession by the end of 2019. Yes, it depends on the sector, but it is likely you are not immune. Are you recession ready?
Perhaps, you have forgotten or never experienced a recession. Or, you were so traumatized by the great recession you can’t even begin to think about it. Here are 5 actions to consider.
- Batten down the hatches. Make sure you have cash and a conservative expense budget as if your sales went down by 20%.
- If you have the cash, begin to look for opportunities to invest. Prepare for the upswing that follows.
- This is the time to increase your connection with your best customers/clients. Who did well with you in the last recession? Who should do well this time around?
- Assess your product offering. Double-down on your best products. Limit inventory purchases of slow moving items. Cut the bottom 10% of products. This is a great time to prune.
- Research new products and services. Is there a new product or service you have been thinking about or customers have been asking for? Be ready to bring it out as we come out of the recession.
It may seem daunting to prepare for a downturn, but the best of the best can ride the waves down as skillfully as they ride them on the way up. Be one of those who is recession ready.
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Photo from the Valle Frances, Torres del Paine, Patagonia, Chile for those who wanted to know where I was last week.