As someone who has a positive outlook on life, instead of looking at the doom and gloom of an economic downturn, I will discuss opportunities in a difficult environment.

Some firms will be retreating and cost-cutting to “batten down the hatches” and get through. They will be looking at areas that are performing poorly and may pull back from those areas. Some will not survive even after doing this. However, there is opportunity in this situation to take advantage of reduced and weakened competition to improve your market share. Look at opportunities to grow, maintain profits and even expand into different markets, products or services while other companies are doing the opposite.

Be aware of competitor businesses that come up for sale within or near your region, or those that complement your current offerings in the same market. It has been a difficult time for some business owners. Those who struggled during the pandemic may not have the energy to deal with the thought of a recession. They might just want to exit, bringing opportunities to take over an established entity and grow your enterprise.

Another struggle many have faced over the past year is finding good employees. In a recession, businesses that have retreated or collapsed will be restructuring and offering redundancies, leading to an increased number of qualified people seeking employment. If you find this is the case, investing in people who fit with your culture will bring long-term benefits for your team and operation. Embedding staff now will mean they are ready to be productive when conditions improve, or they may bring with them additional customers or contacts to help with growth.

During a slow period, you can use this additional time to find opportunity in streamlining your operations, whether it be improving processes that increase efficiency and productivity or enhancing the quality of your product or service. Review ways to use automation, train your employees and consider solutions to relevant issues, engaging your staff in the process of improvement to obtain the best results. If you can install changes during the slowdown, when the economy bounces back your firm will be able to grow and take advantage of further opportunities.

One’s mindset approaching (or in a) recession can make all the difference for how a business meets the challenge. Keep an open mind, look for possibility and opportunity, do your research and be smart with decisions. Keep positive and lean on your business advisors when times are tough. Do not be afraid to use your advisor as a sounding board for possibilities.  A recession does not have to be all bad!

For more help, contact your local Baker Tilly Staples Rodway business advisor.