It is a given that businesses run in a cycle, which means that if you have been enjoying a good time for your business till now, then rest assured that there would soon be a downturn.\r\n\r\nAn economic downturn\u2026 either minor or major would depend on how well-prepared you have been for it. Including taking stock of \u2013\r\n\r\n \tPeople\r\n \tExisting clients\r\n \tMarket\r\n \tProduct\r\n\r\nHowever, in order to recession-proof your business, you need to keep taking stock of the issues mentioned above, not just when hit by the crisis but on a regular basis \u2013 weekly, monthly, bi-monthly, quarterly, and yearly.\r\n\r\nIn this article, we would discuss how organizations could prepare before, during, and post-recession.\r\nRecession Proofing Before The Recession\r\nLet\u2019s admit the word recession does paint a scary picture. Probably because fighting an economic downturn could be taxing on your resources \u2013 talent and finance. Yet, certain businesses have beaten recession hands down and emerged as post-recession winners. So let\u2019s understand what strategies you need to execute when your business is flourishing. But before that, it is imperative to know that an economic downturn doesn\u2019t happen overnight. There are clear signals in the market, and while all of them are excellent indicators, they could be a little late in making them visible. These are -\u00a0\r\n\r\n \tIncreased unemployment rates\r\n \tInterest rates\r\n \tConsumer Price index or inflation rates\r\n\r\nOne of the primary indicators which the leading economists also swear by is the flattening of a yield curve \u2013 a line that displays the current interest rate environment based on bonds and securities. The steeping of the yield curve shows a strong economy, and a flattening curve indicates an economic downturn. So you need to monitor the yield curve closely and be prepared to shift gears as soon as you think recession might hit.\r\n\r\nAs one of the industry experts have said -\r\n\r\n\r\n\r\nIf you are prepared for the economic slowdown, you would be able to breeze through it with little difficulty.\r\nRecession Proofing During The Recession\r\nUnderstandably, recession doesn\u2019t paint a rosy picture, and there is a general trepidation related to it. The anxiety is more because of uncertainty among the workforce. This is where a\u00a0business strategy\u00a0leader could step in and help you in formulating a recession strategy.\r\n\r\nWait a minute; what exactly is a recession strategy\u2026?\r\n\r\nIn simple words, a recession strategy is a plan that is executed to prepare for the economic slowdown, not when the crisis is round the corner but through the entire business practice.\r\n\r\nSo how does a business strategy leader could help an organization through all this?\r\n\r\nWell, an experienced business strategy leader knows the importance of\u00a0strategy framework\u00a0to ensure that an organization is better prepared to stay afloat during recession and emerge as a winner post-recession. She knows which strategy framework out of the hundreds available would be suitable for your organization, and once the framework is finalized, she goes in for the kill with the strategies that would help recession-proof your organization.\r\n\r\nShe would not only implement strategies that would help an organization sail through the recession but also ensure that the company knows the strategies to avoid to have a fall through an economic downturn or slowdown.\r\n\r\nAvoid these strategies during the recession if you wish to swim out of it successfully -\r\n\r\n \tToo much focus on the success achieved during the boom. What you achieved during boom time wouldn\u2019t count during the recession. Economic slowdown needs recession strategies that help you deal with it successfully and lets you emerge stronger and better than before.\r\n \tBlame mindset is not for successful people or organizations. So stop blaming everyone around you for the economic downturn.\r\n \tNegativity would not yield the desired results. So instead of getting depressed and losing confidence in yourself and your team, use this time to lift each other up and work together.\r\n \tTaking the easy route of cost-cutting, retrenching without any plan is for losers. Winners always tread the untrodden path, and that\u2019s how they create success.\r\n \tDestruction of hidden strengths of your organization like the culture and the people. The cancellation of any annual office even would only result in increased distrust in people.\r\n\r\nNow that you know what strategies to avoid during the recession, develop policies to adopt strategies that would help you sail through the future recession periods. Also, find a straightforward approach to segregate these strategies into three main categories \u2013\r\n\r\n \tFinancial Management Strategies:\u00a0reducing your debt, creating more cash reserves, and keeping your credit in good shape. The strategies also help you in investing wisely in the future so that you come out as a post-recession winner.\r\n \tClient Management Strategies:\u00a0why it is not a good idea to rely on just one big client and ensure that your current customers are happy with your services, especially during an economic downturn. This strategy would also assure your clients that you are dedicated to your services and would stick with you through your difficult times.\r\n \tInternal Management Strategies:\u00a0how your team is performing. An internal management strategy would help you in identifying the core strengths of the team and how you could use them to sail through the recession.\r\n\r\nHaving said that, here are five strategies that an organization should focus on while battling recession -\r\n\r\n \tForging stronger relations with existing clients. Your existing customer base would ensure that you sail through the recession. So keep them happy and satisfied through improvised services. Talk to them about their fears and share your creative ideas to combat those fears.\r\n \tWhile being organized and efficient should always be your goal and strategy, it becomes all the more imperative during the recession. This is how you would ensure that you would forever remain at the top of the game and not lose out during the recession.\r\n \tInvest time in learning about new technology that would not only allow you to stay afloat during the recession but would also sail through it with efficient ease.\r\n\r\nAfter The Recession\r\nRecovering from the recession could be easy if you have been preparing for the downturn right from the time before the recession hit to the time recession hit your business. As mentioned earlier, the period just before the economy collapses through the period when it is in slumps is a period of challenges. The period calls for calculative thinking and smart decisions that would allow your business to stay afloat during the economic slowdown.\r\n\r\nHere\u2019s what\u00a0post-recession winners do differently!\r\n\r\nAccording to the research by\u00a0Harvard Business Review, the post-recession winners are the organizations that mastered the delicate balance between cutting costs to survive the recession and investing in growing post-recession in the future.\r\n\r\nThe research also shared a fascinating insight into the organization\u2019s chance of surviving recession and emerging as a winner post it. It revealed that the organizations have higher chances of survival (about 37%) if they implement a specific combination of defensive and offensive moves like -\r\n\r\n \tReducing costs selectively by focusing more on operational efficiency than their rivals, and \r\n \tInvesting relatively comprehensively in the future by spending on marketing, research and development, technology and new assets.\u00a0\r\n\r\nSome of the examples of post-recession winners include Groupon, Wells Fargo, ETrade, Netflix, and Citigroup. These businesses have deployed strategies before and during the recession that have ensured their growth post-recession as well.\r\nGo On, Tell Us What You Think!\r\nDid we miss something? Come on! Tell us what you think about our article on\u00a0recession-proof\u00a0in the comments section.