A hot topic among small business owners is that a new recession is on the way or that the country is already in recession. With inflation so high but unemployment so low, some economists want to change the definition of a recession (two consecutive quarterly declines in GDP). The recent drop in the monthly unemployment rate only confuses the situation where many big tech companies like Amazon and Spotify are laying off their employees.
On The Small Business Radio Show this week, Gini Dietrich, the founder, CEO, and author of Spin Sucks explains what we can do now to prepare for the next recession, no matter when it comes to small businesses. She has run and expanded an agency for the past 15 years. She is also co-author of “Marketing in the Round”, co-host of Inside PR and co-host of The Agency Leadership podcast.
Gini bases her advice on how unprepared she was during the Great Recession of 2008, when she had to let most of the 30 people in her company go. She discusses how to:Keep the cash on hand as sales shrink and customers take longer to pay during a recession. Manage profitability: Find out from your financial statements which sales in your business are making you real money. Diversify your customer base and revenue streams. Recession usually affects different industries unevenly. Identify and retain your strengths and best customers who will stay with you. Be ready to decide what to stop doing; know when to stop! Find out what doesn’t make money or is just a waste of time. Save your financial resources. Manage liquidity the way you do with your profitability. Financial situations can change quickly during a recession, so be prepared to find extra cash.
Listen to the full interview on The Small Business Radio Show.
Follow us on Google News for the latest news.
This post How can you prepare for the next recession? was original published at “https://smallbiztrends.com/2022/08/getting-ready-for-the-next-recession.html”