Recession Advice for Small Businesses

Presented by Marc Aarons

I wanted to reach out today to see how you’re feeling, given the wave of news about a potential recession and its impact on small businesses like yours.

 If you find yourself increasingly concerned, you’re not alone — 93% of small business owners are. The good news is there are simple ways to lessen a recession’s effect and better position your business for years to come. Here are six:

1. Consider taking in a tenant to reduce your rental and overhead costs.   
2. Offer gift cards to your store. Even better? Allow customers to purchase gift cards directly from your website. 
3. Instead of hiring full-time employees, outsource tasks to freelancers or independent contractors. Doing so will drastically reduce your employee expenses.
4. Purge your costs line by line. Sell products, equipment, software, or services you no longer use or need. Consider also shopping your suppliers and insurance policies. 
5. Raise prices with care. Consider easing your customers into it with a sale. Let customers know prices are going up on a specific date due to inflation. Then encourage them to buy now at the current prices to save money. 
6. Create additional income streams. If you own a business where your profit margin is hurting from the rising cost of raw materials, consider creating an online class or e-book or offering consulting services to bring in extra cash with minimal expense.

If you get a second, I’d love to hear how you’re doing and any ways you’re hardening your business against inflation and the predicted recession. In the meantime, my team and I are here to help you thrive—no matter what the future holds. Reach out if we can help. That’s why we’re here.

Marc Aarons may be reached at 714-887-8000 or Email Marc

Money Managers inc. Website

This communication is from Money Managers, Inc.; a Securities and Exchange Commission registered investment advisor.  Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any securities, and past performance is not indicative of future results.  Investments involve risk and are not guaranteed.  Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed here