The fear of a recession sweeping through our economy has been looming in the back of many business owner’s minds. While we can’t control the economy, when it comes to owning a business there are a few ways that you can help prepare, ensuring that if or when a recession hits, you’re ready.
Related: What is a Recession?
#1 Relocate
Relocating your business is generally one of the first tactics that many business owner’s think of. As an example, instead of operating a store front in New York City, move your business to White Plains, NY. The commercial real estate in White Plains is much more affordable, allowing you to have far lower overhead costs. Oftentimes your rent is your biggest cost when operating a business, and with so many online avenues to sell inventory, you don’t need to spend your profits operating a store front in heart of the city, but can instead, enjoy a lower rent amount by signing a lease in areas that offer more affordable leases for business owners.
Related: How to Negotiate The Best Office Lease For Your Startup
#2 Look at Your Cash Flow
Your cash flow is essentially the blood stream of your business and without it, your business won’t be able to survive. Balancing your budget is vital as not only a regular business practice, but to also prepare for a potential recession to hit. Monitor and track your daily cash flow to help you understand the days, weeks, months and even times that generate more revenue, and then use this knowledge to create cash flow forecast charts, these should stretch to the next 3, 6 and 12 months. These charts help you understand what months see the most revenue and what month’s you’ll see lower cash flow, helping you budget costs accordingly, and potentially adjust business ours if necessary.
Related: How Do You Calculate Loss Factor?
#3 Debt Management
When business is going great, it seems life is going great, and when business slows it’s easy to drag those frustrations into your personal life. One of the best ways to ensure that your business stays afloat even amidst a recession is by understanding your debts and managing them efficiently. Don’t take on any new debts, and if possible, use additional revenue to try and lower your current debts by overpaying. This is a tough balancing act, as you want to try and overpay your debts to eventually lower your overhead, while ensuring you are still contributing to an emergency fund in case of a rainy day.
Whether you’re a new business owner, or you’re looking to relocate your business, commercial real estate in White Plains, NY could be the perfect solution for you! Please feel free to contact our office today and we would love to discuss available properties, lease terms, and more!
