Things You'll Need:
- Budget
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Step 1
Reduce your company's expenses. This might mean using less expensive paper, choosing a less expensive health insurance provider, not providing free coffee to employees and reducing executive traveling expenses. It also might mean eventually laying off some employees and consolidating positions. Some of these cost reductions can be done before recession is imminent so that your company can build up retained earnings to draw from when economic times turn tight.
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Step 2
Lower your prices and fees. If the economy is in recession, lowering the prices and fees of your products and services will help attract business. This will result in a lower profit margin--especially since you may need to lower prices to just above cost--but at least your business will have a profit.
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Step 3
Advertise heavily any recession-proof services or products your company offers. Most businesses have at least one recession-proof product or service--even if they don’t realize it. List all of the services and products your business offers. Which of those still will be needed in a recession? Start a marketing campaign for recession-proof services you find on the list.
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Step 4
Consider expanding your services and offering recession-proof services if your company does not currently offer any. This could be a great opportunity to protect your business from a recession. Write a list of other services or products that you think are recession-proof that you could easily add and that fit within the scope of your business.
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Step 5
Provide quality work and products always. Set a precedent of being the best during flush economic times. During a recession, consumers want to spend their money even more carefully, and if your business is known for being the best, customers will come to you.
