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Recession Strategies

Discussion in 'General Business' started by jrbiz, Jul 1, 2022.

  1. #1
    Well, it looks like here in the U.S., the business world is worried, scared, and already in a recession mindset. Did not take long for the greatest economy we had ever seen to be totally undercut and destroyed and we are headed into an economy that will be worse than the "malaise" of the Jimmy Carter years.

    What planning have you done and what strategies have you employed to begin to counter this mess and try to recession-proof your business? I have shifted my company's focus from the commercial world and am actively going after government contracts to replace them. The government does not have bad quarters and cutbacks based on the economy, of course. :)

    Would be interested to hear what practical or creative things others are doing these days.
     
    jrbiz, Jul 1, 2022 IP
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  2. newbie191

    newbie191 Notable Member

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    #2
    I think I have been hearing this talk about recession, job cuts etc forever now. I will tell you what should be the strategy although I haven't been able to implement it on myself. :)


    1. First thing to do is pay off your loans. Get out of any loans you have. For example credit cards or any other personal loans which are very expansive.

    2. When you sell a tangible asset always buy another asset from that money and something whose price is likely to rise. Never spend the money on grocery etc.

    3. It is impossible to cut down on expanses these days. No matter what we do the prices of things seems to keep rising all the time so it is important to generate a steady source of income.
     
    newbie191, Jul 1, 2022 IP
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  3. Spoiltdiva

    Spoiltdiva Acclaimed Member

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    #3
    I wish that I could write that I didn't have any loans out but I do. Next week I am off loading an asset, and with that $$$ all going to to my loans I will be good. Another venture will be paid in full by November. (I hope)
    Cash is low these days as I have over extended myself. That too will resolve itself as I have a lot of it coming in, and all that is secure. (for now at least)
     
    Spoiltdiva, Jul 1, 2022 IP
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  4. Bonus00

    Bonus00 Peon

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    #4
    Honestly the inflation and recession is obvious everywhere you look, as a freelancer and someone that worked on the internet for years, I can see that a lot of people are much less willing to spend and that naturally affects my income sources. As far as strategy goes however, I am looking to push different income sources like "side hustles" (Not a fan of the term, most of these side hustles are actually just second jobs but hey) like youtube content creation for example. I believe another way to improve one's situation in such a time would be to learn new skills and that for possibly get raises either from your current job or even pursue a side job offering to do things for people online. Say you're an accountant in real life but you can also edit videos and a youtuber happens to need a video editor.
     
    Bonus00, Jul 20, 2022 IP
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  5. sarahk

    sarahk iTamer Staff

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    #5
    My barometer - trying to buy 2 motorbikes somewhere on the US West Coast. Stood in a NZ store today with 4 of the exact bikes we want, I know of another that has 2. We're calling 20 motorbike dealers every week from Vancouver to Texas and they can't source them. Recession implies luxury items are slow moving. The US has got a long way to go.
     
    sarahk, Jul 20, 2022 IP
  6. jrbiz

    jrbiz Acclaimed Member

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    #6
    I think that what you are saying is that luxury items tend to be more available during recessions because fewer people can afford them? What is happening here in the U.S. is that there is a massive supply chain problem in conjunction with recession. Part of the supply chain problem (not all) is that the price of fuel is so high that many things are just not worth shipping due to margins, etc. U.S. does not have a long way to go to be in recession. The mindset is here already and that is ultimately what matters. Recession is here and in full force, though it will get worse before it gets better.

    Recessions, stock markets and most of the economy is based on emotions, not numbers. Emotions are now as bad as they were back during the "malaise" of the Carter years.
     
    jrbiz, Jul 20, 2022 IP
  7. cronik

    cronik Well-Known Member

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    #7
    My strategy is the same as always - increase income, as expenses are always going to rise due to inflation and other factors. I love what you're saying about going after government contracts though and that's a smart move on your end!

    Many experts claim we're in a recession, and then there's Kevin O'Leary who says we're not there yet and he's positive about it... I am no expert, I don't know, but I do know we should all be prepared for the opportunities that come during a recession.

    During the last recession, I watched $100-$200k homes in southwest FL sell for $50k... those homes are now worth $300-$500k. And rent prices, forget about it. They went up significantly year after year. I always wanted another recession to hit just so I can get awesome deals on investment properties. Am I prepared now? Nope. I wish I could say I was, but that's still out of reach for me atm.

    That's just one example of opportunity during a recession. There are many others... like affordable luxury items in a time when people can't afford the expensive stuff. Apparently, advertising is supposed to get cheaper during a recession? If someone has proof of this or any experience with it, please let me know. I wasn't running any type of ad campaign during the last recession.
     
    cronik, Jul 21, 2022 IP
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  8. LouisD393

    LouisD393 Peon

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    #8
    The best way to recession-proof your business is to stop focusing on making money and start focusing on building a sustainable business. You need to find a business that can run without you. You should be investing in your business, not spending your money on it. Your focus should be on doing what customers value and in turn, you will create value for yourself. The most important point is to have a vision for the business, and know who the ideal target customer is and how you are going to reach him. Finally, control your expenses, especially unnecessary costs.
     
    LouisD393, Jul 27, 2022 IP
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  9. spiced

    spiced Member

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    #9
    my strategy is simple cut back and use the extra money for savings and precious metals
     
    spiced, Aug 2, 2022 IP
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  10. cronik

    cronik Well-Known Member

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    #10
    Nice approach. I don't care to buy precious metals, but I have been increasing the amount I stash away in my favorite crypto projects and things are looking bright. I was buying when everyone else was scared and will continue to do so.

    But still, I think always increasing income or ways of making money. Always increase your value by learning new skills and investing in yourself. Times might get tough, but as I said in my previous post, this is a time of opportunity.
     
    cronik, Aug 2, 2022 IP
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  11. knowledgeherald

    knowledgeherald Well-Known Member

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    #11
    My strategy is to increase job or business hunting by investing more time and minimizing expenses to as much as possible.
     
    knowledgeherald, Aug 24, 2022 IP
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  12. Randall Magwood

    Randall Magwood Active Member

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    #12
    I would send more of the profits that I make from every sale into my business savings account, and use the checking to pay for bills, running ads, and making sure I have enough to live off of. My business isn't current slowing down, but if it were this is what i would do to start saving for rainy days.

    I would also invest an extra hour into each day to do more free marketing so that I can get more customers for free.
     
    Randall Magwood, Oct 9, 2022 IP
  13. MillieMc

    MillieMc Peon

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    #13
    Hey,
    Yeah, side hustles are an excellent option. But it is not workouts in the case of accounting jobs because it is a precious and lucrative profile. They can work for different clients simultaneously, so creating content for youtube videos does not consider. Accounting persons always try to explore their world with vast opportunities.
     
    MillieMc, Oct 28, 2022 IP