Recessions and economic downturns are scary for most businesses, particularly those that are small. Your income is probably tight enough as it is and a recession can put an enormous amount of strain on your business. The temptation can be to give up. However, a recession can also be seen as a time to reassess and push forward. It’s not perfect but being a business owner means taking the rough with the smooth and engaging with your industry in hardship. If you change your thinking, you can spot the new opportunities a downturn can provide.
Simply put, a recession can actually be a great time to grow your business. Here’s why:
1.
More motivated employees. People are looking for stability during uncertain times and may be more willing to stick with a growing company. If you treat your employees right, they’ll stay with you for longer and be willing to work harder to reward that faith. A boss that treats his employees right is a boss that has employees for life.
2.
A larger talent pool. Not every worker will be fortunate to keep their job in the downturn and perhaps a bit cynically, this gives you the opportunity to invest in talented new staff. With more people unemployed, you’ll have a bigger pool of talented employees to choose from.
3.
More competitive prices and more bargaining power. With other businesses struggling, you may be able to get better deals on goods and services. They’ll also be more willing to listen to your demands and you can work out better deals and contracts. Also, if you can cement yourself as a strong business in a slow period, you immediately become a wanted commodity for other local businesses.
4.
Pent-up demand. People may be cutting back on spending during a recession, but that doesn’t mean they don’t still want and need your product or service. When the economy improves, they may be more likely to buy from you since you’ve been there for them during tough times. Also, a business that is strong in the slow period will be faster out of the gates when the economy recovers, giving you a much needed boost.
Of course, growing your business during a recession comes with challenges. You’ll need to be extra careful with your finances and make sure your expansion plans are realistic. But if you can navigate the challenges, a recession can be a great time to set your business up for future growth.
