It’s easier to do business when the sun is shining, the world is full of light, and everyone has open pockets and an eagerness to spend on whatever might benefit their lives. All you need to do is keep doing what you’re so good at already: providing value. But what happens when it turns overcast and recession threatens? Everyone’s pocketbook is lighter and their discretionary spending budget goes to zero. Sales slow down and you begin to wonder if there’s room for you at the table after all.
Get Yourself a Navigator
At BASECAMP, we don’t just consult on bookkeeping, we partner with you to develop specific strategies and tactics to meet your needs. Rather than fly blind through the economic downturn, schedule a call with us to talk about your concerns. We want to help you navigate challenging decisions so we can get to the other side together.
Here are a few things to think about:
01 Know Your Numbers and Plan Ahead
Bookkeeping during a recession might not be fun for anyone, but with a little bit of insight you’ll have a chance to weather this storm and go on to see many sunny days. Your first step should be to sit down and do some planning. During uncertain economic turns you’ll find it easier to navigate monthly cash needs if you plan for the worst and make decisions with the expectation that your business will be affected by an economic downturn. Plan conservatively and sell aggressively.
02 Develop Creative Contingency Plans
Don’t let challenges catch you blind-sighted. The time you take now to think through contingencies will turn out invaluable when push comes to shove. Sometimes thinking outside the box can help you stay relevant during a recession, and you’ll discover new ways to position yourself that give you an edge during hard times.
03 Optimize for Margins and Conserve Cash
Knowing your own financial situation is another key to successfully navigating these uncertain conditions. When the economy was booming you might have been able to get by on intuition, but not anymore! Understand your margins!
Numbers that meant success six months ago may now mean something very different. If you understand your margins thoroughly, you’ll be able to pivot away from unprofitable sales and conserve cash when it counts.
04 Downturns Are an Opportunity to Strengthen Your Foundations
It’s time to get back to the basics. Maybe you’ve put bookkeeping on the back burner or have put off documenting key processes and training your team. Now is the time to get your books in order and your documentation where it should be. Take advantage of any extra time you have during the downturn to focus on the core of your business and get your foundation right.
05 Unite Your Team to Come Out Ahead
Make sure everyone in the company is on the same page and go over your core values and the goals you want to be working toward. A strong team, united by a shared mission, is one of your biggest assets. When the downturn is over and the sun comes out again, you’ll be leaps and bounds ahead of the competition and ready to scale with a strong foundation.
Next up: Using Bookkeeping as a Strategic Advantage
