How to Make your Business Prepared for Recession Pt 2
Have a system in place to track your invoices and payments. Set an alert for overdue payments. This way, you will be updated when a payment is due right away. It simplifies the task of trying to manage it customer-by-customer.
Review Both Old and New Costs
When times are good, and cash is flowing in, it is easy to neglect to look over your books to see where you can save a few dollars. Then when times get rough, we scramble to cut costs and save a few pennies.
Reviewing your current costs and any new costs quarterly, and seeing where the money is going, and how it plays a part in your business, will allow you to adjust your costs as you go. Are you spending money on something that is not improving your business? Does your business really need that? Is there a supplier who offers it at a lower cost? Knowing the answers to these questions is extremely helpful, and going over them regularly will give you the change to adjust them as needed.
Make a Plan
A successful business always needs a good business plan. You create the plan, and then bring it to life. Having a plan for a recession is a very wise thing to do. That way you can set yourself up for success. You will have a game plan ready to go and put into action on any given day. You will not have to waste your time creating a plan at the point a recession hits, as your time and energy will be greatly needed to keep everything running smoothly.
Create your Culture
If the leader of your team of employees is struggling because of stress or anything else, the team of employees will be affected too. If the leader creates a great culture at work, and does not let anything interfere with that culture, people will be happier and feel safer while at work, even during hard times.
A recession will affect every aspect of people’s lives. Creating a great culture will make people want to come to work. People want to do a better job, and they want to please their leader. It is a proven fact that employees are more productive when they are happier at a job, so remove any obstacles you can that could prevent that.
Team building events throughout the year are a wonderful way to cultivate great culture. Your team will know you are going above and beyond for them, therefore you will see them working harder.