While things may not be looking good for everyone during the current state of affairs with the coronavirus (COVID-19), it is important to keep a cool head through out all of this. Everyone needs to make sure they're safe, hygienic, and practice social distancing. We might be heading towards a recession, so here are some tips on how to survive a recession.
1) Know Your Numbers
How do you survive a recession without panicking? The key is know your financial performance, understand your financial position. Do not be affected negatively just because you have heard some horrific news over the radio or the TV. Sit with your CPA and accounting team to find out what your real financial performance is. How would the economy affect you and your business. Develop smart strategies to overcome these challenges.
2) Have Access to Cash
Regardless of your cashflow position, if you do not have a line of credit for your business, now is the time to ask! Don’t wait till when you actually need it because it would be too late by then. Fee for applying for a line of credit is minimal i.e. a one-time fee of $100 and your line is good for at least 12 to 18 months, which means you will have access to cash in emergency situation.
3) Care For Your Customers
No matter how bad is the economy, as a business owner, nothing is more important than caring for your customers. Maintain great customer service. Be cool, calm and collected at all times. Assure your clients that no matter what, you are here for them. If anything, keep even closer communication with them throughout tough times, they would truly appreciate you.
4) Maintain Strong Work Ethics
Work even harder during a recession. Demonstrate strong work ethics, go above and beyond to serve your clients. Get things done quicker (there should be no excuse now that things are slowing down), address your clients’ concern faster. If you run a business and have employees, you are their role model. You need to stay positive and be encouraging to them at all times.
If you follow all of these key points, then you'll have a better chance at surviving the recession. Be the leader you need to be in these difficult times, everyone will follow your lead and your customers will be grateful for it!