With all the talk of Rona V and economic uncertainty, it can be easy for our minds to wander to a negative, helpless place. ESPECIALLY for business owners. But don’t despair! Dozens of mega companies including Uber and AirBnB were launched during the 2008 financial crisis, and there are so many ways we can actually use an economic downturn to our advantage!
We’ve got five simple steps for you to put your mind at ease and help you and your business not only survive this recession, but THRIVE and come out even stronger!
1. Understand what a recession is, and what it is not
A recession simply means a general decline in economic activity. On average in the US, there is a recession once every four years. This means two important things:
- Its perhaps not the terrifying monster that some may imagine, but
- It’s completely inevitable and in our lifetime we will likely live through dozens!
All recession are different, however, and its important to remember that a recession is not a guarantee of any past downturns repeating themselves. For many of us, we hear the word “recession” and immediately devastating thoughts and memories from the 2008 financial crisis come to mind. It’s important to remind ourselves that 2008 was one of the worst economic times in recent history – and certainly not the norm!
Think of recessions like headaches; every once in a while you’ll get a really bad one, but the majority of them are relatively short lived and don’t cause significant damage. If you’ve got a plan in place, you can manage through this headache!
2. Shift your mindset
Understanding what a recession is and what it’s not is the first step in developing a healthy mindset to carry you through this time. It is absolutely crucial to maintain an abundance mentality through economic uncertainty. The Law of Attraction is hard at work during these times; individuals who focus on wealth, business growth, and abundance will experience more and more of these things. Business owners who ruminate on fear, lack of customers, and bills piling up will manifest more of the same.
If possible, continue to give or even increase any donations you make to charities and people doing good work. Continue to invest in yourself through books, courses, and personal development.
One of the most powerful ways to control what goes around within our brains is to control what goes into our brains. This means less news, media, and garbage TV, and more affirmations, personal development books, and gratitude journaling. Remind yourself often that this is a very temporary time, and that you are focused on your long-term goals.
3. Review your personal finances
If you haven’t reviewed your family budget recently, now is a great time. Use one of the many great downloadable worksheets, or at the very least, know how much money is left over after the essential bills are paid. It can be helpful to do this twice; once for your current situation, and once for a what-if situation. The “what-if” budget is not for the sake of preparing for the worst, but rather to put your mind at ease that if income should temporarily decrease, you know where you stand and you have a plan!
It can be helpful to pad your savings, both personal and business, during this time for some extra peace-of-mind. It’s also a good time to check your credit reports for errors and fraud, as unfortunately identity theft increases during recessions. Lastly, consult with your financial advisor or tax professional to see if they have any recommendations for you or your business to take advantage of the downturn.
4. Consider opportunities within your business and alternative revenue streams
The next step is to take a hard look at your business offerings and see if there are any areas that can be optimized for the current economic situation. It’s true that many customers, though certainly not all, are tightening their pocketbooks these days. Can you offer financing for your more expensive services? Could you break your most popular service or course into smaller pieces and offer them separately?
Think about opportunities for additional revenue streams within your existing business. If your website has a blog, can you add affiliate links? Can you create an add-on that would pair nicely with an existing product or service?
And finally, consider any current or future needs for expanding your team. Thousands of rockstar professionals are out of work right now, so business owners can often score incredible talent.
5. Connect with like-minded women and support each other
The final step is to grow your network to include some incredible women who understand what you’re going through. This may be stalking LinkedIn to find a business mentor who has thrived through the last recession. It may be joining one of the many outstanding Facebook groups for women entrepreneurs or following a few more Instagram accounts that are laced with positivity. Or it may be a more formal alliance like one of the amazing groups here at Crowned for Success!
Whichever route you take, don’t struggle alone. Know that hundreds of thousands of your peers know exactly what you’re going through. We are in this together!
Are you ready for an even greater financial confidence boost? We created a 10-day e-course to educate and empower fempreneurs to make the best financial decisions for your family and your business. Learn more about The Bosslady’s Financial Survival Guide here!