How to “Recession Proof” Your Brand

Jillian Parks
January 2, 2023

Recessions are a natural part of the free-market system. Since they are such a normal part of the business cycle, it is imperative to prepare for them. While recessions may make small businesses anxious, they can also be times of opportunity. Because of this, understanding economic concepts in the present day, safeguarding your business, and of course, keeping a great attitude, your business can come prepared for any recessional storm it may encounter.

We at Fifty Six have put together some tips and tricks for “recession proofing” your business to make sure you know what to expect when an economic crisis occurs.

1. Secure Capital Before You Need It

Having cash reserves and other financing options to fall back on will be a great tool to stay afloat. According to Eyal Lifshitz, the CEO of BlueVine, “Flexible working capital will be the single most important factor to help keep doors open, as it was in 2008.”

Additionally, Lifshitz emphasizes that acquiring capital has become much easier in the present day, especially for small business owners. Banks are easing credit, so making it priority to secure capital now would be the right move.

2. Assess Your Workforce Needs

Do you have everyone on your team that you would like? Are there areas of your company that you find may be lacking? These are good questions to ask prior to a recession to ensure that you are prepared for what your business may encounter.

Take stock of the number of employees you have currently, as well as their skills, to make sure their efforts align with what your business would need during a recession. But also be ready to make adjustments for efficiency purposes. 

3. Build Up Employee Skills

You will be reliant on your team to think creatively, actively problem-solve, and overcome pivoting during an economic hardship, so making sure they are in prime shape to meet these challenges will save your company in the long run. 

Cross-training staff is a great way to begin doing this, so employees have a grasp on every aspect of the company. Even if they only learn basic skills in some areas, at least they will be familiar with the company as a whole, rather than just their specialized department.

4. Establish Flexible Client Agreements

Establishing client flexibility is a great way to build customer loyalty. Offering rewards in return for contracted sales volumes, or customize offerings in exchange for faster payment returns. 

Being flexible can also create goodwill and repeat customers, since customers will see that you are bending to their needs, and will therefore be appreciative of that.

5. Assess Your Organization’s Risk Tolerance

It is very important to do an honest assessment of your company leaders to see how much risk they can take to determine how adaptable they are and how much risk they can absorb without cracking under pressure. Risk assessment can include how much risk your organization can handle, its risk attitude, and how much risk it is willing to take.

ABOUT THE AUTHOr
Jillian Parks is a Fifty Six Social Media Marketing Intern. She is a student at Virginia Tech, located in Blacksburg, Virginia, studying Marketing Management, but her hometown resides in Sparta, New Jersey. In her free time, she loves taking her dog, Jenna, for walks and traveling to new places. She hopes to live in New York City full-time after graduating.
BACK TO FINDINGS

How to “Recession Proof” Your Brand

Jillian Parks
January 2, 2023

Recessions are a natural part of the free-market system. Since they are such a normal part of the business cycle, it is imperative to prepare for them. While recessions may make small businesses anxious, they can also be times of opportunity. Because of this, understanding economic concepts in the present day, safeguarding your business, and of course, keeping a great attitude, your business can come prepared for any recessional storm it may encounter.

We at Fifty Six have put together some tips and tricks for “recession proofing” your business to make sure you know what to expect when an economic crisis occurs.

1. Secure Capital Before You Need It

Having cash reserves and other financing options to fall back on will be a great tool to stay afloat. According to Eyal Lifshitz, the CEO of BlueVine, “Flexible working capital will be the single most important factor to help keep doors open, as it was in 2008.”

Additionally, Lifshitz emphasizes that acquiring capital has become much easier in the present day, especially for small business owners. Banks are easing credit, so making it priority to secure capital now would be the right move.

2. Assess Your Workforce Needs

Do you have everyone on your team that you would like? Are there areas of your company that you find may be lacking? These are good questions to ask prior to a recession to ensure that you are prepared for what your business may encounter.

Take stock of the number of employees you have currently, as well as their skills, to make sure their efforts align with what your business would need during a recession. But also be ready to make adjustments for efficiency purposes. 

3. Build Up Employee Skills

You will be reliant on your team to think creatively, actively problem-solve, and overcome pivoting during an economic hardship, so making sure they are in prime shape to meet these challenges will save your company in the long run. 

Cross-training staff is a great way to begin doing this, so employees have a grasp on every aspect of the company. Even if they only learn basic skills in some areas, at least they will be familiar with the company as a whole, rather than just their specialized department.

4. Establish Flexible Client Agreements

Establishing client flexibility is a great way to build customer loyalty. Offering rewards in return for contracted sales volumes, or customize offerings in exchange for faster payment returns. 

Being flexible can also create goodwill and repeat customers, since customers will see that you are bending to their needs, and will therefore be appreciative of that.

5. Assess Your Organization’s Risk Tolerance

It is very important to do an honest assessment of your company leaders to see how much risk they can take to determine how adaptable they are and how much risk they can absorb without cracking under pressure. Risk assessment can include how much risk your organization can handle, its risk attitude, and how much risk it is willing to take.

ABOUT THE AUTHOr
Jillian Parks is a Fifty Six Social Media Marketing Intern. She is a student at Virginia Tech, located in Blacksburg, Virginia, studying Marketing Management, but her hometown resides in Sparta, New Jersey. In her free time, she loves taking her dog, Jenna, for walks and traveling to new places. She hopes to live in New York City full-time after graduating.
BACK TO FINDINGS