Business Strategies for a Recession

As the credit crisis hangs over our economic future, many small business owners may be asking the same question: What can I do to recession proof my business? Luckily, as a small business, you have the capability to adapt quickly – an advantage your larger competitors don’t have. Here are a few things you can do to get your business in shape:

Diversify and avoid the middle market
As the current market slows, you can strengthen your client base by broadening the services and products you offer. By providing things that your competitors don’t have, you can attract new customers and stay appealing to your old ones. You never want to get too dependent on one customer’s support because they could disappear and so would your business. As you begin to brainstorm new product ideas, focus on the things that people can’t go without and avoid the middle market. During a recession, people are more likely to choose a similar product that costs less compared to the slightly nicer one. They don’t want to pay extra for ambiance, so strip down your product to the essentials.

Increase marketing, but do it cheaply and consistently
During slower times you have to find new ways to attract customers and make sales. The key is to not expose your business to expensive marketing campaigns like image building or large ad spaces. Their success is hard to measure and may not even work. Instead, offer promotions and coupons. People are looking for good deals, and it makes them feel better to know that they are saving money. This reduces upfront marketing costs by ensuring a purchase before any money is spent. Short term promotions and coupons allow you to attract the attention of bargain shoppers without needing to cut your prices long term. They also give you the chance to hook new customers onto your product. Lastly, make sure you market consistently, all year long, so that you are always attracting new business for the future.

Go green to save green
Making your business greener can save costs and is good for the environment. It gives customers another reason to choose you over someone else. Start off by reviewing your energy costs. You can call your electricity company to request a free energy audit. Sometimes they will even visit your business to tell you where you can reduce energy costs. Simple things like changing from halogen light bulbs to L.E.D. bulbs can cut your energy bill way down. One company in Florida saw their energy bill decrease by half just from changing the bulbs they used. Going green is an ongoing process, but if you start off with the obvious fixes that are cheap to change you’ll start to see savings right away.


No matter what the economic circumstances happen to be, there are always businesses that do well and those that fall behind. Being smart about the products you offer, how you market them, and where you cut costs can keep your business running profitably. The business changes you ultimately decide to make are only limited by your creativity and flexibility.

Please feel free to share any business ideas you think are important to be successful during a recession!