How to Survive a Recession, If It Happens
Audio version available here:
Length: approx. 2 min.
With how unpredictable 2023’s economy has been, it is important to be prepared for any turn the market takes. With an inflation rate of over 3% from 2022, and rising interest rates, what should you do to keep your business afloat? We have four tips to share with you:
Know your numbers- hearing the word recession can be scary, but if you sit down with your accountant and have a full understanding of your financial position, you can quell your fears.
Have access to cash- Waiting until it is too late to apply for a line of credit can be disastrous for your cash flow.
Care for your customers- No matter how bad the economy is, nothing is more important than caring for your customers. They will appreciate you if you keep communicating during hard times.
Maintain strong work ethics- During tough times, you need to work even harder so your business does not fall behind. If you have employees, you need to be a good role model for them.
Now, there is some good news. According to the US Bureau of Labor Statistics, inflation rose 3% from one year ago, making it the lowest increase since March of 2021. This means your cash will not continue to lose value as quickly.
If you are just starting your business in 2023, we advise you to develop a proper business plan. This includes performing SWOT (strengths, weaknesses, opportunities, threats) analyses.
Remember to stay motivated! Your business will not flourish if you give up. Have a schedule, and do not try to do everything yourself. Burnout can be deadly.
At XQ CPA, we believe in standing firm with our clients and their businesses. Make an appointment on our website, xqcpahouston.com, or give us a call at 832-295-3353. We are here to help you.