The U.S. government has confirmed two straight quarters of economic decline. Six months of contraction is generally considered the start of a recession. Where does this put small business owners who are already stretched thin?

Here are six suggestions as you build your small business’ recession response:

Don’t be afraid to color outside the lines when it comes to sales, conversion, and retention: Try offering some less expensive options to keep clients on board or see what you can do to creatively increase foot traffic (ex: a fancy DIY coffee bar). When times get tough, we do what we must!
Use a portion of profits to beef up emergency savings: I’m a big fan of the Profit First formula in which you deduct profit from each sale and use the remaining amount for expenses. Put a portion of monthly profits towards a long-term emergency fund that will pad your business when the unexpected occurs.
Do a thorough review of expenses to become as lean as possible: Do you have duplicate licenses for digital communication tools like Zoom or Slack? Can you temporarily replace any tools you’re using with free trials? Review your expenses on a regular basis to see how you can cut corners.
Optimize your best resource – your employees: We love our employees, but human errors and inefficiencies create unnecessary business costs. Training and coaching help as well as ways to cost-effectively automate manual processes.
Take a deep breath and remember that this too, shall pass: Economic downturn is a natural part of life and business. You’ll get through this, just like every other hardship your business has encountered.

Don’t be afraid to color outside the lines when it comes to sales, conversion, and retention: Try offering some less expensive options to keep clients on board or see what you can do to creatively increase foot traffic (ex: a fancy DIY coffee bar). When times get tough, we do what we must!

Use a portion of profits to beef up emergency savings: I’m a big fan of the Profit First formula in which you deduct profit from each sale and use the remaining amount for expenses. Put a portion of monthly profits towards a long-term emergency fund that will pad your business when the unexpected occurs.

Do a thorough review of expenses to become as lean as possible: Do you have duplicate licenses for digital communication tools like Zoom or Slack? Can you temporarily replace any tools you’re using with free trials? Review your expenses on a regular basis to see how you can cut corners.

Optimize your best resource – your employees: We love our employees, but human errors and inefficiencies create unnecessary business costs. Training and coaching help as well as ways to cost-effectively automate manual processes.

Take a deep breath and remember that this too, shall pass: Economic downturn is a natural part of life and business. You’ll get through this, just like every other hardship your business has encountered.

We’re in this together. Don’t hesitate to reach out if I can provide any support from one small business owner to another!