We have all been hearing about and anticipating the 2023 recession. As we head into the New Year, Amazon, Salesforce and Vimeo announced major cuts in excess of 25,000 jobs. Yet, the recent job numbers came out strong and the market has been rallying based on, I believe, the Feds efforts to slow down the recession.

There is so much contradictory information and we are just not sure what to believe. Even if you look at the numbers you can argue both ways. While, I am not an economist, I do know that during these times small businesses have to exhale and come up with a plan.

I would like to share my top 5 recession tips that I use for my own business during contracted markets. Some of these are easily transferrable to how you approach your household budget during a recession too.

Cash flow – start securing access to cash now; or, if you have cash, start reserving it and HOLD onto it.
Receivables – Be more aware and make sure your outstanding receivables DO NOT go beyond 30 days; know what is going on with your suddenly slow paying customers especially when to expect payment.
Expenses – Make sure there are no surprise expenses popping up! Be prepared!
Ask the question – Do I really need to invest in this (fill in the blank) to generate revenue or is it a “soft” value-added benefit to my business? If it generates $ do it; if it is something nice to have for whatever reason, simply wait out the recession.
Be Transparent – whether you have a big workforce, partners, suppliers or contractors you work with, be honest and let them know how they can contribute to your company’s sustainability during this recession. Believe me, I know first-hand that they are willing to help because your company ultimately contributes to their livelihood.

Do not wait until it is too late. Start making sure you are ready if the economy gets worse. Being prepared helps you weather the recession season that much better; but, ultimately, the economy is out of your control. Even still, our fixed costs for our businesses are out of our control too; so we need to identify, concentrate and adjust the business activities that are within our control.

Do not be afraid to still be bold. Think of the many businesses that were started and have now grown into big brand names during other recessions including Netflix and Microsoft; heck even during the great depression iconic brands were started like Publix Supermarkets and Ocean Spray Cranberries. Businesses can start and/or grow at any time in a market. Continue to be smart by being prepared and changing your approach where needed.

And, while our anticipation of the 2023 recession is real; remember Bo Bennett’s words:

“As sure as the spring will follow the winter, prosperity and economic growth will follow recession.”

So, hold on tight, another season is coming!

Sonya Ruff Jarvis is the Managing Member of Jarvis Consultants LLC. Sonya is a Business & Marketing Consultant; Content Creator & Connection-Maker; Thought Leader & Industry Expert and Book Author & Entrepreneur. Areas of expertise include: Retail; Marketing; Diversity, Equity & Inclusion (DEI); and Human Resources. Sonya has been a part of the B2B retail industry for more than 30 years. Interested in Sonya’s books? They can be found on Amazon or get an author autographed copy at www.jarvisconsultants.com.

Let’s talk about your next project and how Jarvis Consultants can support your initiatives; email sonya@jarvisconsultants.com.