How to Prepare Your Business for the Next Recession

How to Run a Business

Is the U.S. economy headed for another recession? Business observers sure seem to think so. Among them: Ami Kassar, CEO of business loan advisory MultiFunding.com.

"I'm not an economist, but you don't have to be one to see there are some potential warning signs staring us in the face," Kassar writes in a recent article for Inc.com. "And any upper-level collegiate finance major has heard more than once how people tend to forget (especially after a lengthy bull market) that things always go in cycles."

Whether you think a recession is imminent or not, it's a good idea to prepare for one -- just in case.

One of the best ways to do so, according to Kassar, is to increase liquidity with a new line of credit. "Now is the time to secure a line of credit, which can be more affordable than a straight loan because you only pay interest on it when you tap it," he explains. "You may never use the line of credit -- and that's certainly fine -- but knowing you have available cash if something unexpected occurs will give you peace of mind. And if a recession does occur, lenders generally will tighten their standards and offer less favorable terms, so get in while you can."

Another important strategy for recession-proofing your business is diversification. "If you rely on a handful of major clients, the impact might be brutal if a couple of them run into problems of their own and suddenly scale back or stop [doing business] with you," Kassar concludes. "Perhaps you can focus on different industries" or expand your offerings with new products or services.


More Tips:
https://www.inc.com/ami-kassar/how-to-financially-prepare-your-business-for-a-future-recession.html

Questions, Comments, Suggestions?
Contact Successful Meetings with your "How To" ideas.