• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Facebook
  • Instagram
  • LinkedIn
  • Twitter
  • YouTube
Big Ideas for Small Business logo

Barbara Weltman

Big Ideas for Small Business, Inc.

Whitepaper download

Subscribe and download our eBook, "150+ Tax Deductions for Small Business A to Z."

This field is hidden when viewing the form
Get the:

  • Home
  • About Us
  • Big Ideas For Your Business
    • Idea Of The Day ®
    • SMB Legal
    • SMB Taxes
    • SMB Financial
    • Small Business
    • Newsletter Archive
  • Services
  • Books
  • Blog
  • Multimedia
    • Videos
    • Radio Shows/Podcasts
  • Be a Guest Blogger

Recession-Proofing Your Business: Plans B and C

June 22, 2023 / By Barbara Weltman

Recession-Proofing Your Business: Plans B and CIt’s common knowledge that having a business plan is helpful, if not essential, in running a successful business. But savvy business owners know that having backup plans to address anticipated or unexpected contingencies is just as important. Understand how contingency planning operates and what matters you should address so that you’ll be prepared to handle a recession if it should happen.

How plans B and C work

The concept of contingency planning is nicely illustrated by HUD’s approach to winter planning back when COVID-19 was a serious issue. Plan A covered the usual or normal projected needs of communities for the winter. Plan B, called a marginal surge, urged communities to anticipate additional needs if there was a surge in demand (e.g., more shelters needed). Plan C, labeled substantial surge, helped communities plan if there was a dramatic increase in demand for services. In effect, each plan—A, B, and C—addressed different levels of need.

This same A, B, C, approach can be adapted for your business when it comes to recession planning. Current talk about a recession seems to indicate that there’ll be a mild one, if at all. Plan A can cover what you’d do in this situation. Should a recession prove to be more serious, then Plan B can address additional steps needed to adapt to the situation. And Plan C can deal with what you’d do if a recession were to be extremely serious, like the Great Recession of 2008 and 2009.

Business matters that planning should cover

As with a basic business plan, contingency plans should look at certain areas:

Marketing. As demand slows in a recession, what are your plans to reach new customers? Thinking about this now—because any recession hits—allows you to do it without pressure. Good marketing ideas can then be implemented, even if there is no recession.

Management and personnel. With a recession, your revenue may decline, making it challenging to meet payroll. How will you handle staffing at that time? This important question was discussed in a previous blog.

Finances. Last year, the Federal Reserve Banks’ Small Business Credit Survey found that 59% of small businesses were in fair or poor financial health. This is a very troubling statistic when facing a recession. The takeaway: now is the time to get your financial house in order. Interest rates remain high and aren’t likely to decline anytime soon. If you have outstanding loans, it may be costly to continue carrying them; try to pay them down while revenue remains reliable. New borrowing may be very challenging. Put cash flow management tools in place if you don’t already use them to ensure you’ll pay your bills on time and maintain or improve your business credit.

Supply chains. If your business is inventory-based, a recession may hit your vendors. Do you have backups in your contact list? Have to discussed working with them? Again, inventory planning can always benefit from having a wider array of suppliers.

Final thought

You may be thinking “why plan for a recession if a recession is unlikely to happen”? Sure, planning takes time. But, as President John F. Kennedy said, “the time to repair the roof is when the sun is shining.”

You won’t have wasted your time with planning; it gets you thinking.

Find more helpful information on business planning presented in earlier blogs.

Tags business plan contingency plans planning recession recession-proofing your business supply chain

Primary Sidebar

Categories

  • General Business (498)
  • Guest Blog (109)
  • Homepage (20)
  • Small Business (989)
  • SMB Financial (322)
  • SMB Legal (65)
  • SMB Taxes (324)

Barbara’s Recent Posts

  • Disasters Happen: It’s Important to Be Prepared Now May 27, 2025
  • How Work Order Software Transforms Small Business Operations May 26, 2025
  • The Numbers Are Up for Sole Proprietorships May 22, 2025
  • New Business or Project Crowdfunding: What To Know May 20, 2025
  • Old-School Estimating vs. Smart Solutions: What’s Really Holding You Back? May 19, 2025
  • Employees Getting Called to Public Service: What to Know May 15, 2025
  • Not Too Late to Prep for Summer Now May 13, 2025
  • How Will the Next Generation of Learners Affect the Workplace May 12, 2025
  • Moms Know Best: Lessons for Entrepreneurs May 8, 2025
  • Mental Health Challenges in the Workplace May 6, 2025
  • Let’s Celebrate Small Business! May 1, 2025
  • Scaling Your Business: Adding a New State Location April 29, 2025
Awarded Top 100 Small Business Blog medal (link will open in a new window or tab)
Marquis Who's Who 2023 Badge
Top Small Business Blogs (Link will open in a new window or tab.)
8 Financial blogs small business Owners Need to Read. Invoice home.  (link will open in a new window or tab)
Best Small Business Blog, Expertido.org
Top 50 Small Business Blogs 2018
Best Small Business Blogs
BizHumm Top 100 Business Blog Award to Barbara Weltman
FitsSmallBusiness.com: Award for Best Small Business Blog 2017 (link will open in a new window or tab)
FitsSmallBusiness.com: Award for Best Small Business Blog 2016 (link will open in a new window or tab)

Footer

Big Ideas for Small Business logo

Small business ideas, business tax news and small business consulting from Barbara Weltman to provide business owners with the information they need to succeed. Visit our small business blog, Idea of The Day®, small business books and articles on small business taxes, small business finance and small business legal advice.

Contact Us

[email protected]

(772) 492-9593

gacor maxwin situs slot thailand terpercaya situs slot gacor situs gacor akun pro thailand slot bandar togel terpercaya

Latest Tweets

bigideas4sb Big Ideas for Small Business® @bigideas4sb ·
May 27

Do I Have to Tell External Candidates I’m Considering Someone Internal? — Improve Your HR https://bit.ly/43dscoO #smallbusiness #hiring #workplace

Reply on Twitter 1927477539204710619 Retweet on Twitter 1927477539204710619 Like on Twitter 1927477539204710619 Twitter 1927477539204710619
bigideas4sb Big Ideas for Small Business® @bigideas4sb ·
May 27

A Good Time to Review Your Company’s Driving Policy - https://bit.ly/4lVXNUC #smallbusiness #drivingpolicy #driving

Reply on Twitter 1927462491241562410 Retweet on Twitter 1927462491241562410 Like on Twitter 1927462491241562410 Twitter 1927462491241562410
bigideas4sb Big Ideas for Small Business® @bigideas4sb ·
May 27

Mental Health Challenges in the Workplace - It’s been estimated that nearly 1 in 5 people in the U.S. have a mental health issue https://bit.ly/4jT70LG #workplace #wellness #smallbusiness #wellbeing

Reply on Twitter 1927426874210222315 Retweet on Twitter 1927426874210222315 1 Like on Twitter 1927426874210222315 1 Twitter 1927426874210222315
Load More

Copyright © 2008–2025 Big Ideas for Small Business, Inc  |  Designed by Hudson Fusion

  • Privacy Policy
  • Sitemap