With inflation continuing to rise and governments pressing harder on the brakes to slow it down, it is all but inevitable that the economy in the U.S., and in many other countries besides, will go into recession next year. That will surely put a damper on the interior design industry. You can begin to take steps now, though, to mitigate the impact of a recession, possibly even to thrive in it.
In this podcast, Gail and Erin turn to one of their associates, Don Markland, to get advice on what designers can do to prepare for the coming recession. Don is an award-winning entrepreneur, sales coach and consultant, speaker, author, and a regular contributor to Forbes magazine. He advises businesses of all sizes on matters relating to revenue, marketing, sales and strategy.
Don said the first principle to keep in mind is “Never let a crisis go to waste.” Crises are fomenters of change, and with change comes the impetus to innovate. And with innovation come new business opportunities. A number of major companies have been born in times of crisis by entrepreneurs who had the vision to see an opening to provide something new.
One advantage designers have now is that they have time to prepare before the crisis begins. Instead of worrying about how their firm might be hurt, they should instead be thinking about what can the recession do for their business.
Don offered a few practical steps that owners can take now to safeguard their firms against a recession:
- Cash flow matters. It is crucial to manage your cash flow and plan for any potential disruptions in the future. Make sure you have reserves, either in cash or via lines of credit, to get through a dry period.
- Consider what you offer and who you offer it to. If current and past clients decide to cut back on discretionary spending, who else will need your services? What sectors do well or are not substantially impacted by a recession? Health care, for example, is one.
- Consider taking on good debt. Good debt is that which allows you to invest in your business so that you can take advantage of new opportunities in the future.
Another principle to keep in mind is, when trying new tactics and strategies, “If it doesn’t work, don’t stop. Keep at it until it works.” Some take more time and effort than you might think.
Although it may sound counter-intuitive, said Don, don’t contract during a recession. Expand. Use the time to prepare for future growth.
In their brief exchange, Don and Gail had a lot more insights to share on how owners can overcome their fears and make the most of a recession. You’ll want to listen to the entire podcast to not miss a one.
If you’re listening on your favorite podcast platform, view the full shownotes here: https://thepearlcollective.com/s6e8-shownotes