Is Your Small Business Recession Proof?

Is Your Small Business Recession Proof?
You’ve trained your crew well enough to hold down the fort — and your vacuum truck fleet — when the boss takes some time off.

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Whether you’ve been pumping septic tanks for decades or you just purchased your first vacuum truck, when money and expensive equipment are involved, your small business is at risk for economic problems. 

If you were directly affected with the loss of employees or decreased profits from fewer jobs, you know first-hand the damage done by the 2008 economic collapse. Today, perhaps there’s no immediate threat of another economic crisis, but preparation is key to keeping your business afloat. 

It’s always better to be over prepared than to leave your business vulnerable if something similar — or worse — happens down the road. Perhaps the 2008 recession took a toll on your fleet, your employees or your overall mental health. Learn from what happened, and prepare for the future.   

According to an article on BusinessWeek.com, the top three ways to protect your business from being hit hard with another recession is to splurge on hiring the best employees, stay in constant contact with your customers, and take care of yourself and your personal well-being.   

U.S. Census Bureau figures show more than 200,000 small businesses nationwide went under between early 2008 and 2010 due to financial turmoil. As a result, more than 3 million jobs also vanished. Don’t become a statistic. 

Here are three ways you can create a recession-resistant business. 

1. Keep your friends close and your enemies closer.

Translation: Stay in constant contact with your customers (or they might quickly become your competitor’s customers). 

Perhaps you’ve become a bit lackadaisical about reaching out to current customers to remind them you’re prospering or offering to go the extra mile for new customers. Now is the time to change your ways. Customers need to know you will be there for them — even if it’s a holiday and you’re about to sit down to a family dinner. Everyone feels the pain when the economy takes a hit, so don’t forget about your regulars.   

Reaching out to new residents in your service area will also ensure your business can withstand an economic setback. If you’re pumping a customer’s tank and notice a new neighbor moved in, stop by, introduce yourself, and give them your business card. And, if practical, offer a discount for their first septic pumping or a free inspection to ensure the system and its components are in good shape. 

As Mom warned, “Treat people how you would like to be treated.” Think of your customers as family — maybe not the spend-the-night and lend-me-some-money type of family, but people you care about and who care about you. They are the ones who help you build your business, and they help you create new opportunities and growth with word-of-mouth referrals. Think of it like this: Why should customers call you instead of your competitor down the street? 

2. Don’t skimp on recruitment

If you want to be the best, you need to surround yourself with the best. That means you need a team of the best employees. Profit loss might make this seem impossible, but keep in mind that 10 top-performing employees will generate better results — and more money — than 25 mediocre employees. 

Most economic downturns don’t last long, so continue to focus on long-term growth. “It’s easier to invest training time for new hires during slower growth periods,” says the BusinessWeek.com article. “Employees that are fired during a recession will have to be re-hired — which costs companies a lot more money in the long run.” 

One option is to recruit people who have been laid off from other companies. They will be hungry for new opportunities and eager to prove themselves. “This is a great time to find top performers who will help bring your company to the next level,” he says. 

3. Take care of you

You probably put everyone else before yourself, right? Well, stop. If you’re not healthy, who is going to run your business? 

It’s important to ensure your office staff and crew members are healthy, but it’s also vital that you are mentally fit, physically able and emotionally stable enough to handle the damaging effects of a possible recession. 

Make that dreaded annual trip to the doctor’s office. Take those daily vitamins that make you cringe. And, whenever possible, take a vacation to relax and come back recharged and ready to run your business. It’s OK to hand over the reigns to your second-in-command for regular pumping jobs. You’ve trained your crew well enough to hold down the fort — and your vacuum truck fleet — when the boss takes some time off. 

And while it might be easier said than done, staying positive in the face of turmoil will drastically change your desired outcome. “Think of ways to bring in new types of customers, maybe partnership opportunities, or new products and services,” says the article. “Many businesses stop doing things that will help them grow in fear of the recession, and then do just that — stop growing.” 

There are many other factors to consider when recession proofing your small business, and you won’t be able to control them all. However, by preparing now, you can protect your business from becoming victim to a down economy. 

For help making your small business more profitable, sign up for the three-day Pumper & Cleaner Profit Series scheduled for March 31-April 2.  



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