10 Must-Dos For Entrepreneurs Going Into a Shift

10 Must-Dos for Entrepreneurs going into a Shift

Earlier this week I wrote 6 tips for anyone in down economic cycles, today I’m following that up with tips for entrepreneurs going into a down cycle. Heads up business owners, this is for you!

1. Cut your expenses by 10-20%.  Now.  Make two lists, things you will cut immediately, and things you could cut if the going gets rough.
2. Grow your client list.  Assume 20-30% of them fall off.  Make up that difference now.
3. Consider securing a business line of credit.  You can get one when you don’t need one.  You won’t be able to if you do.
4. Now might be a good time to maximize your retirement and tax vehicles.  That is long term money in the market and the recent tax changes were significant.
5. Speaking of taxes, check with your CPA about your entity status.  You may need to reconfigure your entity type.  At very minimum, have a conversation with your CPA now about where you stand with your tax liability for 2018.  Don’t wait until spring of 2019 and get surprised.  This is a good tip every year but particularly critical during the down cycle.
6. Interrogate the reality of your business model in a downward economic cycle.  I’m concerned that there are a lot of online digital marketing agencies that are getting paid big bucks to manage Instagram accounts.  Mark my words, most of that will dry up in a shift and a lot of people who are talking big right now, will be eating crow in 12-36 months.
7. Be ready to take market share from your competitors.  Are your systems ready?  Is your team trained?  It’s game time during a shift, are you ready to play to win?
8. Double down on training.  Skills and service matter more than ever in a shift.
9. Operate now as if you’re in bottom of the down cycle.  Always operate as if you’re in the next cycle, not the one you’re in.
10. Stay positive.  This is a time to clean up your business and take advantage of opportunity.  Keep your head in the game and get a coach if you tend to worry.  That will only hold you back from taking advantage of what can be the best next 36 months you’ve ever had.