By most accounts, the U.S. economy is experiencing a tough time with the credit crisis and skyrocketing energy prices. The possibility exists, if it isn’t happening already, for the nation’s first recession since the September 11th tragedy.
Steps can be taken to protect yourself and your company from this, and be at the forefront once the economy recovers and more business returns.
First, and most important, is the protection of your personal assets. Some businesses will inevitably fail during a recession. If you are a sole proprietor or partnership, it may be wise to form an LLC or corporation to protect your home, car, etc. from creditors looking to satisfy their claims in the event your business does not make it.
Next, the difference between surviving a recession and going under depends a lot on cash flow, so keep a close eye on that. Be careful who you extend credit to for services and review and revise your collection policy.
Also, if your company is sound, you may want to apply for a line of credit if your business does not have one already.
Slow times are also no reason to slack off on marketing. Ask for referrals from current customers by offering discounts, or also get feedback. But be sure to reward them for their participation!
Beyond the above mentioned, trimming overhead and remaining optimistic can help you weather the storm. With soaring energy prices, upgrading equipment to more efficient models or making improvements to facilities are also important things to consider.
