Surviving a Recession

We aren’t sure if it is coming. We do know that if it does, it will affect a huge number of businesses, large and small. What do you do if it does come? How will you know if it is here, and if you are one of the businesses whom it will affect?

First, assess your business from a customer standpoint.

Do you sell a luxury, or a necessity?

Is your item high end, or low end?

Is the value of what you sell truly solid?  MLM products are not – they are priced high to allow for complex compensation.

High end products often fall in sales during hard times. So do luxury items. Items that people can put off for a year, usually get put off for a year. People still buy, but they buy more conservatively.

The next thing is to assess some other potentials:

Does your product or service offer a potential income source? If so, it may actually gain ground if it is a good potential.

Does your service enhance business success? This can go either way – when businesses are in a pinch, they will look more to do-it-yourself options, or lower end solutions, but they may feel a stronger need to compete.

If a recession comes, you’ll need to be looking at the possible outcomes within your own business. You’ll need to understand the mindset of your own customers in regard to your product or service.

Watch your site traffic and business trends. Make sure you account for seasonal trends as well, but if your business slumps at a time when it usually would not, for a period of more than two months, it may be time to call in a pro to help you devise some strategies for recovery.

It is more affordable, and easier to compensate early on. The businesses that fail will be the ones that do not recognize when they are sliding into trouble, or who do not respond in an effective manner once they realize they are there. Plenty of businesses will fail. Yours might as well be one that succeeds.