8 Entrepreneurs Share How to Recession-proof Your Business
Lisa Gilmore of Lisa Gilmore Design by Ashlee Hamon Photography
You know we love to talk about challenges, babe! Why you might ask? It’s not because we have trouble finding silver linings, oh the contrary, ha. But being open about challenges inspires other women to overcome their obstacles and helps make them less complicated, less intimidating, and much less of a mystery. So today we’re talking about a specific challenge, and that’s how to recession-proof your business. This is something everyyyyy business owner should have a plan for.
The biggest lesson I learned in my first big girl job as Marketing, Promotions, & Events Manager is that it’s not about keeping obstacles from happening. It’s about having a plan and staying flexible so that when something does go wrong, you’re prepared to handle it.
A strong business isn’t just strong when business is good— it can also withstand the heat when things go south. Truly, the word recession can be swapped out for another challenge or economic decline, such as COVID, like we’re experiencing right now. Some of us have been in business long enough to have weathered the recession of 2008. Some of us are fighting our way through COVID as our first uncertain period.
Let me introduce you to women who are sharing a bit of their story and some tips on how to prepare your business for choppy waves.
Share what tip you found to be the most helpful to you in the comments!
xx -Gina
Amanda Evans | Tight Ship // IG
“This is where diversifying services comes into play. But, you cannot make your customers have money so you have to pump up the value in the services you do offer to make them see the benefit so they will pay you to continue.”
Tampa, FL
Brooke Eversoll | Bee Studios Design // IG
“I survived the last recession pretty well. But I also didn’t own a business, I worked for someone else. I was salaried and bought a house (somewhat high). Then I left to commission world. For me PATIENCE AND CONSISTENCY got me through. Not rushing into big things, waiting shit out (paid off for me with my house), and being consistent with your projects and clients. Hard times encourage us to rise above, and I intend to do just that. I’m going to have a hard look at my financials, review my budgets and projections, and make some plans. I want to make sure my biz is stable enough to endure and keep my employee(s). I feel like a momma bird and I want us ALL to succeed.”
St. Petersburg, FL
Cathy Dieckhaus | Lily Rose Numbers // IG
“As a Bookkeeper, I see many businesses unprepared. My suggestion to my clients is to set aside a “rainy day” fund and to make it hard to withdraw. It is easier to have them set aside at least 1-2% of each amount deposited for leaner times. The goal is to have at least 2-6 months set aside for leaner times.”
Tampa, FL
Emily Benko | Benko Dynamic Styling // IG
“I lost my job within days of the pandemic and subsequently survival mode kicked in. To me, to survive means to create so it only made sense to begin my creative small business venture. Within moments of my decision to push forward and choose my passion, I was reborn! I’ve referred to quarantine as Moses 40 days in the desert as I cannot find other words to relay my experience. I found myself and therefore turned my dream into my reality. Benko Dynamic Styling has always been inside of me but it took isolation to see it and find the bravery to pursue it.
I will admit it’s been a challenge to start a business in the midst of a pandemic and recession but if your business is wholeheartedly a part of you then it will survive any circumstance, both in light and darkness, if you just put yourself above all. Don’t lose sight of yourself or your purpose, and recognize that in unprecedented times, the route to your business’ success will not be linear. Adaptability is key. On a similar note, it takes many business owners years to recognize such but I’m lucky enough to face it head on and base my business on it.”
Tampa, FL
Holly Cain | Cain Financial Services // IG
“Being financially steady is always a good goal to reach toward but even more so when we think about recession proofing. Unfortunately, it's not sexy and oftentimes it seems boring but small things can make a big difference in the long run.
- Having and stocking a business savings account
- Having and using a tax savings account
- Paying yourself a reasonable wage (so much to say about this one)
- Setting reasonable goals with plans to achieve them not just pulling a number out of the sky (this is all about mindset during lean times too)
- Keeping your expenses at a reasonable percentage keeps you sustainable if your revenue drops
- Paying down or off debt, not carrying high balances if you don't have recurring revenue
These things and so many more can be boring and feel like an uphill battle but they make such a difference in times of struggle, even just to feel secure so you can make healthy informed decisions not reactive decisions.”
Tampa, FL
Jessica Santander | Project Moment Designs // IG
“Definitely have been hearing about this for over a year and am interested In hearing what others have to say. Thus far, for what I know, building up a trusting community is essential for our clients, a place where they can feel home away from home with a topic they enjoy from us as a business.”
Tampa, FL
Lisa Gilmore | Lisa Gilmore Design // IG
“I have been working on ways to make LGDesign “recession proof” and here are two ways:
- Monitoring finances DAILY has been huge. Being financially transparent with my team so they see how much it costs to operate and for them to have a seat at the table, together we all work on ways to make more revenue and make it last.
- Ways to do simple add ons to services add up. Creative ways to work remotely and widen our cast net. Setting higher standards, not to be just a great business but an exceptional one. Especially in the luxury service industry this will be key to help you survive, it’s not just about what you have it’s how you offer it and make it memorable.”
St. Petersburg, FL
Sarka Nicol | Citrus Press Co. // IG
“I moved from the U.K. to Tampa and it sparked the idea of doing invites part-time on Etsy while I looked for work and settled in Tampa. Although I looked for work, there wasn't much and my part-time Etsy endeavor turned into a full blown business and it's been going strong for 10 years now.”
Tampa, FL
