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Quick Tips to Recession-Proof Your Creative Small Business

Sophia Angel Lou Quiachon
Quick Tips to Recession-Proof Your Creative Small Business

The economy is extremely volatile. You could be on top of the market one day and find yourself rolling down the hill the next day.

Recession is the cause of many creative small businesses' downfall. More often than not, small businesses underestimate the economic uncertainty and realise their mistake far too late.

But there are lots of quick-fix steps you can take to make your creative small business recession resistant and keep your creativity and your finances afloat in uncertain times.

Start protecting your future finances today...

Keep an eye on your money

Creative small businesses with poor cash flow management are the most vulnerable during an economic recession. According to a US Bank study, 82% of small businesses that go bankrupt. do so due to poor cash flow management.

Use financial management software and cash flow forecasting tools to monitor what goes in and out of your account. The better you know your numbers, the easier it is to create a financial strategy that works even through the highs and lows of the economy.

Tracking KPIs will also keep you in the know and allow you to make better decisions for the financial health of your business.

Create more income generators

Diversifying your offering means more streams of income that are less vulnerable to economic uncertainty and changing consumer habits.

You could introduce a new service or product, offer recurring membership plans, produce sponsored content, create educational content and so on!

More avenues of income and more overall revenue mean a more robust business.

Build better relationships

Loyalty goes a long way. When times are tough, it is your repeat clients that will keep you in business.

Good relationships with your clients also earn you some ambassadors for your business. Rest assured that they'd recommend you at any chance they get! So make sure not to focus all your investments on earning new customers, but leave some for your current clientele as well.

Stand out

A strong business idea with a niche appeal and great marketing is likely to withstand even the toughest of financial storms.

Try to stay calm and confident and focus on providing the best possible service you can to your clients—these times will pass. Strategy for a recession-proof business complete!

Visualist is a software supporting creatives to work, earn and scale. Want to learn more? Head to our website.

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