The majority of the pandemic-related job losses have been made up for. According to figures provided by the Bureau of Labor Statistics, the U.S. added 372,000 jobs in June, above expectations, while the unemployment rate stayed stable at 3.6% — the lowest in more than 50 years.
Despite the strong job market, the overall economic outlook is becoming more negative. The “r” word is a word no company likes to hear. However, depending on who you ask, the nation may be talking itself into or already be in a recession.
So it’s important to keep in mind that the economy as a whole depends on the success of your company, in addition to your own livelihood, that of your staff and that of your customers. Over 45% of the GDP is made up of small enterprises, and when things improve, these companies are the main drivers of quicker economic growth and job creation.Recessions are a normal part of the business cycle, so it’s important to plan for them.
✓ Pay attention to what your employees & clients are talking.
✓ Analyze the tolerance of risk for your company
✓ Create an emergency fund.
✓ Don’t go rushing to lay off your people
✓ Defer Funding – think twice about large investments
✓ Diversify Investments
✓ Spend time building relationships with clients
✓ Plan as though you’re going to sell your company
✓ Invest in adaptive technologies.
When corporate leaders realize they are in a recession, many may believe it is too late to take any action other than cost-cutting measures. Starting to prepare a business for a recession before it strikes is essential. It is preferable to approach recession-proofing with consideration and moderation to prevent mistakes, which are more likely to happen when management are ill-prepared for a crisis. It necessitates a delicate balancing act between shrewd customer marketing, costcutting, and strategic investment. Take into account these above mentioned recession-proofing ideas to assist your company in surviving or even thriving amid a downturn in the economy.