If you’re worried about a possible recession, you’re not alone. Instead of letting fear and uncertainty paralyse you, take control with five simple actions.

A third of the world will go into recession this year (IMF prediction). Whether it happens, or not, it’s crucial for businesses like yours to be prepared.

During a recession, some businesses will struggle to survive. When a business closes down, money owed to other businesses goes unpaid, and people lose their jobs.

As fear grows, people change their spending habits, usually from large investments (e.g. new car) to smaller services (e.g. local restaurants).

Understanding these broader economic trends and how they impact you and your customers is crucial to making good decisions.

However, it’s not all doom and gloom. Recessions also bring new opportunities, new deals, less competition, and more staff availability. Commercial cleaning services, as an essential service, may has a high level of resilience to recession which creates opportunities.

We need to be prepared to make difficult decisions and adapt our strategies to protect our businesses in a downturn, but also to take advantage of any opportunities that may arise.

Here are five practical steps that you can take to help you and your business thrive in a global recession:

Revisit your strategy

Your business’ success is rooted in your core values and capabilities. Now is the time to review your business strategy and confirm it aligns with your values and mission. Knowing who you serve, what you do best, and how you win in the market will help you make right decisions to innovate and pivot when necessary.

Protect your cashflow:

Cashflow always important but is even more critical during a recession. More than 90 per cent of businesses fail due to cashflow issues. Take a close look at your expected cashflow receipts and payments calculate how many days/weeks/months cash you have in reserve. Create a few simple “what-if” scenarios e.g., what if sales fall by 30 per cent? What about your customers’ ability to pay you? Look at ways to boost your cash flow – remember method has pros and cons.

Switch to a value-based pricing model

People don’t buy based on price; they buy on value. They consider price, speed, quality, and service. Give customers’ options that enhance the customer value by more than your cost. Creating bundle and package deals are very effective for cleaning services. If things get tough for a customer customise your services rather than lose the customer.

Listen to your staff

Your staff are at the forefront of your business. They interact with customers, handle day-to-day operations, and know your business inside and out. They will spot challenges and opportunities on a daily basis. Implement short feedback loops to uncover their knowledge and ideas. Use these to innovate and pivot during a recession.

Prioritise your wellbeing

Humans have a fight or flight response to stress that can lead to poor decisions. Emergency services train by simulating stressful situations to override this response. You can train by running through “what-if” scenarios and simulating the decisions you will make. As a leader it’s important to make time for self-care activities like exercise, meditation, or spending time with loved ones. The responsibility you carry can take a toll on your mental health, especially in times of economic uncertainty. By prioritising your own self-care, you’ll be better equipped to support your team and navigate difficult times. Taking care of yourself is not a luxury, but a necessity for effective leadership.

By taking these five actions, you can position yourself and your business to not only survive but prosper through a recession. Don’t let the possibility of a global recession paralyse you, instead act and rise to the challenge.

Let’s stay strong and support each other as we navigate the ups and downs of running our businesses.

Brad Horan is founder of Lucrature. He can be reached at bhoran@lucrature.com or visit www.lucrature.com

This article was first published in the May/June issue of INCLEAN magazine.

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