Recession is a part of the standard business cycle. From a business perspective, it is irrelevant if there is a stock market recession or an economy recession. The end result is the same. Business must respond quickly and effectively to continue to operate during an economic downturn.

Use a two-pronged approach to manage your business effectively in a recession. Look to your financial statements for changes that can have an immediate impact on your cash flow. Below are some common starting points for effective management in an economic downturn.

1. Manage your cash flow in a recession.

2. Reduce your staffing costs in an economic recession.

3. Develop effective pricing strategy in a recession.

Action Steps
The best contacts and resources to help you get it done

Create positive cash flow in a recession

Improve your cash flow by accessing the liquidity of your unused assets and inventory during a recession. Positive cash flow is critical to the health of your firm in an economic recession. Improving your liquidity highlights the firms ability to take advantage of recession information and continue to fuel growth.

I recommend: Contact firms that specialize in the business management advice. Idea Sellers provides help and advise. There you can purchase books by Daniel Sitter to improve the health of your business in a recession. To improve the sales of your business, download the ebook by Debbie Mrazek from Recession Proof Sales.

Reduce overhead in an economic recession

Consult with staffing agencies and your human resources department to determine a staffing plan for the next year. Short list positions that must be eliminated at key benchmarks of sales to ensure the long term financial health of the firm. Implement recession advice to improve the long term commitments such as outstanding vacation pay and other liabilities during a recession.

I recommend: Download strategies to recession-proof your business from Coupa. To reduce your overhead costs, think outside the box. Clerical Business Solutions provides virtual assistant services and an ebook to help grow your business.

Focus on pricing during a recession

Engage the services of a pricing consultant to ensure your pricing strategy works to your advantage during a recession. These firms provide detailed recession training to help businesses maintain profitability during a recession. In the absence of a sound pricing strategy, many firms focus solely on sales, not profits.

I recommend: Join business owner groups to develop business strategies to help in a recession. Gravitational Marketing has a Facebook group to share stories and advise with other small business owners, along with other recession advice like free ebooks and consulting services on their website. Drew's Marketing Minutes provides an ebook on getting help with recession issues for your business.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Investigate the services of recession consultant firms to provide tools and tips unique to your industry. Many firms have experience assisting businesses to grow during recession time, not just to survive.