How to Recession-Proof Your Biz
Everyone is talking about a recession right now and all the things playing into that and it’s getting everyone to panic a little bit. What does this mean for your business? There is totally a way to prepare for this recession. Here’s how to recession-proof your biz and what to prioritize right now.
I’ve heard a lot of worry from you and many of my clients, so I know this recession prep is something we all need to discuss. By the end of this post, my goal for you is to have a plan and some strategies to implement right now so you don’t feel so out of control. Let’s get started!
How to Recession-Proof Your Biz
Recessions are tricky because sometimes just saying it’s a recession is a self-fulfilling prophecy. As soon as people hear “recession” they panic and stop spending money and then the recession deepens. This can be scary, especially for small business owners or entrepreneurs like us. A recession is brutal for all parties, but there are some steps you can take right now to lessen the impact on your business.
Recession-Proof Your Biz Step #1: Don’t panic.
You have lived through a pandemic. Have you ever thought about that for a second? You’ve been through hard times and you have come out triumphant. So just like the pandemic, while it seemed heavy in the midst of it but light looking back, this recession is a minimal part of your whole life.
This recession is not going to last forever and your business can and will outlast it if you do things right. Keeping this mindset of calm and rational thoughts (& not panicky and scared) will be the foundation of how to recession-proof your biz.
Recession-Proof Your Biz Step #2: Get super clear on your cash flow.
There are probably some things that you’re spending money on that you forgot about. Are there any subscriptions that you’re paying for that are no longer helpful? Are there things that you keep buying that you just don’t need? What money is going out? To get super clear on this, I recommend having a separate bank account that is just for your business. It will be easier to keep track of your cash flow and not let it get mixed in with any other income or spending.
Now that we’ve talked about the money going out, we also need to make sure we know all the money that is flowing in. How are you getting more money right now? Is it from your courses? Your products? Your affiliate links? Get really clear on what part of your business is making you the most money right now.
When I realized my agency was making the most money but was spending more time on the teaching aspect of my biz, I made some adjustments. I focused more on the systems in my agency and took steps to strengthen them and my team to make sure my agency was set up to continue performing well and ready to bring in more clients.
So, make sure you can identify which part of your business is making you the most money and spend some time strengthening that product to make it an improved version of what’s already working for you and your customers.
Recession-Proof Your Biz Step #3: Make long-term decisions.
I was chatting with a client not too long ago and they suggested to stop using Pinterest right now. I asked them what their long-term goal was with that decision. Did they want to continue to get traffic from Pinterest? Did they want to keep making money from getting people from Pinterest to your blog? If the answer is yes, then don’t make an easier short-term decision to cut off Pinterest.
Pinterest is one of those search engines that takes a while for it to get back up and going. So you don’t want to lose traction on it. I’m not saying you keep Pinterest no matter what, but what I am saying is to make sure you are making decisions with a long-term perspective rather than a short-term one.
Another long-term decision to make is getting an email list! Let’s really hunker down and get people on our email lists because that is going to stick with you throughout all of this. An email list is something I talk about often, so if you’re new here and don’t know how powerful an email list can be, check out my post HERE.
Recession-Proof Your Biz Step #4: Double down on the value you add.
People are going to be spending less on luxury items. So we need to understand what value our product is adding to that person’s life. For example, let’s say you teach cooking classes. And you’ve been selling those and it’s been going well. Now, you need to double down on what value you add to these cooking classes. To help add value to this product you could advertise it as a class where your customers spend x amount of dollars for it, but it will end up saving them thousands because they’ll learn easy homecooked meals which will keep them from getting takeout so often.
No matter your product, you can market it in a way that will help people still see the value in purchasing it, even if their wallets are getting tighter. Just make sure to be thinking about how you are saving your customers’ money by spending money on your product instead.
Recession-Proof Your Biz Step #5: Build a community.
As I said, you are going to outlast this recession, and the people that are going to come with you are the people that you bring into your community. How are you creating your community? What are you doing to make your people know that your account is a safe and supportive place for them to land when they are feeling overwhelmed and burnt out?
Brooke Romney is an amazing example of this. She has built a community that is founded on safe and supportive relationships between her and her people. You can listen to/read our full conversation HERE. So, how do we do that same thing? What can we do to build a community that will propel our businesses forward? It’s all about the content, which I’ll talk more about in step #6, but first I want to touch on how to diversify your content.
I recommend using more than just one slice of the social media content pie. Do not put all of your eggs in the Instagram basket. However, I have to caveat that–if you’re just starting out then by all means choose just one platform and get really good at it and then start to spread to other platforms when you feel ready.
The best way to reach a diverse audience and really build that strong community is to show up in multiple places (YouTube, Pinterest, TikTok, etc.). And either start or keep creating video content! People eat it up and it performs the absolute best when it comes to making an impact on your audience.
Recession-Proof Your Biz Step #6: Create high-quality content.
Creating and diversifying your quality content is what will build you a solid community wherever you go. (A.K.A. on multiple platforms.) And you’re going to find that this type of content is the secret to your success in building that long-lasting community and business. This post is one example of quality content. I’m giving you a ton of high-quality information, it isn’t just fluff. And I hope you can trust me and will want to follow me on multiple platforms because of it.
If you’re not sure where to even begin with producing this high-quality content, I’ve got you covered. Check out my free webinar HERE where I walk you through creating a year’s worth of content in one hour. This webinar will give you a plan, help you know what you’re talking about, and what you’re going to teach about for the entire year. Doesn’t that sound great?
Recession-Proof Your Biz Step #7: Get an email list.
I know I mentioned this earlier, but you know I can never stop advocating an email list! You need to be super deliberate in building that email list, or even a text list will work too. It’ll make the biggest difference in your business in the long run because you will have built up this loyal community in a place that you own, so when a social media disaster happens out of nowhere you’ll be prepared by having a place where you can still communicate and sell to your people.
The best way to get people on your email list is to create some type of freebie and market it to your followers on your social media platform. You should be talking about it in your stories, having a link in your bio for it, and talking about it all of the time. Even when you feel like you’re inviting or selling too much, keep doing it! I promise it isn’t annoying or overwhelming. You are a business and if you want to keep being a business then you need to keep sharing, keep inviting, and keep selling.
Here are some of my top posts on email marketing to help get you started:
- Why You Need an Email List + Email Marketing 101
- 13 Things You Can Send to Your Email List
- 9 Reasons Why You Should Be Using Email Marketing
- How to Create a Killer First Email Sequence
How to Recession-Proof Your Biz
Alright, I hope these 7 steps leave you feeling more prepared and ready to take on this new year. These steps are really what it takes for you to know how to recession-proof your biz and I know you can carry them out. If you’re looking for some extra support, join my Insta Money Makers Coaching Group. You’ll get everything you need to stay consistent, determined, and successful. And it’s just nice not doing business alone, right? Anyway, I hope to hear how this post helped you so come follow me and send me a dm over on Instagram @iammichellegifford!