By Kelly Bagla, Esq.

There are around 582 million entrepreneurs in the world today. A study recently conducted found that 62% of Americans dream of entrepreneurship, but how many of them really know what it takes? Anyone can run a business in good times. But in times of economic crisis, the responsibility to get your business through the tough times rests solely with you.

Here are some of the most popular economic downturns and the effect they have played on people’s livelihoods:

• Great Depression of 1929-1933: The stock market crash caused prices and production to fall and left millions unemployed.
• Great Recession of 2007-2009: A subprime mortgage crisis led to the collapse of the housing market and the failure of some of the nation’s largest financial institutions.
• COVID 19 Recession of 2020: A global pandemic forced businesses to close and put millions out of work.

Because you don’t know what will happen, you must prepare your business for all the “what ifs” that could affect your business. Here are some business bulletproof strategies you can implement today:

Business Disaster Recovery Plan
A disaster recovery plan is a formal document created by an organization that contains detailed instructions on how to respond to unplanned incidents such as natural disasters, power outages, cyber attacks, and any other disruptive events. The plan contains strategies to minimize the effects of a disaster so an organization can continue to operate or quickly resume key operations. Disruptions can lead to lost revenue, brand damage, and dissatisfied customers, and the longer the recovery time, the greater the adverse business impact. Therefore, a good disaster recovery plan should enable rapid recovery from disruptions, regardless of the source of the disruption.

Save, Save, Save
Many financial experts recommend you save enough money to cover your operating expenses for at least 3 to 6 months depending on the business you operate. As some of you are still feeling the effects of COVID 19 and the negative impact it had on our businesses, we have learned that in times of crisis you should really save for one to two years of operating expenses. In times of crisis, you can use your savings to prevent layoffs, pay vendors, maintain equipment, and meet your other operating necessities.

Continue Marketing
It is no secret that rough economic times can cause uncertainty and make businesses feel uneasy about spending on advertising. During unprecedented times, you will probably look for ways to save money, but one thing you do not want to stop doing is marketing your business. Marketing will allow you to maintain brand awareness and stay top of mind with consumers. If you disappear from the market during a recession, it can be challenging to regain that brand recognition and consumer trust once the economy recovers. Moreover, continuing to market your products and services during a recession can give you a competitive advantage. Many businesses cut back on advertising during tough times. You can stand out and gain market share by continuing to market your products and services.

Customer Service
Customer service is always important but in a down economy it’s even more essential. The service you provide distinguished you from your competitors. When you are recognized for delivering exceptional customer service experiences, people will associate that with your brand and choose you over others. Show your customers that you care about them beyond the point of sale and make a genuine effort to respond to their inquiries, address their concerns, and resolve their complaints. The more you focus on customer service, the more your service will improve for both your customers and your business. It may not seem significant when things are good, but every customer counts in times of crisis. The level of service you provide is the determining factor that will either draw customer support or drive it away.

As a business owner, you wear multiple hats, juggle several obligations, and play various roles. You get to celebrate your business wins, but you are also responsible for preventing the losses. Entrepreneurship is the dream of many, but it also comes with responsibility, and you cannot anticipate everything. No one foresaw that the stock market would crash in 1929, or a global pandemic would hit in 2020. But part of setting your business up for success is to make it bulletproof ensuring it can survive through any economic climate.

Becoming a business owner, you control your own destiny, choose the people you work with, reap big rewards, challenge yourself, give back to the community, and you get to follow your passion. Knowing what you’re getting into is smart business because the responsibility of protecting your business falls on you.

For more information on how to legally start and grow your business please visit my website at www.BaglaLaw.com

Disclaimer: This information is made available by Bagla Law Firm, APC for educational purposes only as well as to give you general information and a general understanding of the law, and not to provide specific legal advice. This information should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.