How to Protect your Small Business in the event of a Recession

The news is touting that a recession is in the near future as the economy looks worse and worse everyday. Consumers are worried and it is being felt in every industry throughout the United States. If you are a small business owner you can protect yourself and prepare for the "R" word with this article.

Instructions

Difficulty: Moderate

Things You’ll Need:

• Read this article
• Remain patient through turbulent times

1. Hire and retain good employees. Your workers are the bread and butter of your business. They are interacting with your customers and you want to keep them happy (the employees and customers). Spend some money to allow your employees to get continuing education in customer service. It will be worth it.
2. Hold regular meetings. This means at least once a month (not once a year). Meetings are a way to make sure that everyone involved in your business is on the same page. Inviting your accountant to the meeting and sharing what was discussed with your attorney isn't a bad idea either.
3. Network with others in your industry. Networking is a great way to see how your competitors are handling the bad times. You may learn something from their mistakes or good fortune.
4. Keep excellent records. It is important that your business have organized records so that you can set goals and put your business on a path toward financial success.
5. Make rules. It is important that you have by-laws and an employee handbook. You never know when you may need to hire someone if you are the only employee of your business right now. Not having documentation of your business plans could destroy your vision for what you imagined your business would become in the future.
6. Take care of your existing customers. It is much cheaper to cater to your past clientele than try and recruit new customers that are unfamiliar with your business.
7. Take a good look at your cash flow projections for 1 month, 6 months, 1 year, 5 years and 10 years. Set goals for yourself and have the cash to back it up in the event of a (god forbid) recession.