Whether we’re technically in a recession or not, times are hard for small businesses and their customers. The Fed continues to signal its priority is reducing inflation, which means interest rates will continue to increase. This means further challenges to the U.S. and the global economy. The following are tips for your business during these challenging times:

Don’t

• Panic – This is most likely a “correction, not a crash” according to Moody’s Chief Economist Mark Zandi.
• Let Key Staff Go – It’s hard to find good people and you want to keep them for when times improve. Good employees will easily find another job.
• Stop Marketing – Continue using marketing strategies that have proven to perform. Focus on your target customer and track leads.
• Make Non-Essential Expenditures – Now is not the time to replace your truck. Keep it maintained and wait. You probably can’t find one now at a good price.
• Give Up Your Margins – Don’t discount. Use other creative strategies to sell and be competitive. Demonstrate your value.

Do

• Be Confident – Remain positive. Challenges create opportunities.
• Communicate – Let your customers and employees know you’re in it for the long run. Control the narrative so they don’t jump to conclusions.
• Build Cash – Hopefully, you’ve built your reserves for a rainy day.
• Pivot – Don’t make a major change in your focus but consider tangential, complementary opportunities to diversify.
• Review Marginal Products and Employees – Don’t cut key staff but evaluate employees that are not performing or contributing. Review underperforming or unprofitable products. Now may be the time to make a move.

Nobody has a crystal ball and can predict with certainty what will happen next in the economy. As business owners, stick to your basic “blocking and tackling” during both good times and challenging times. You can improve your likelihood of success if you follow these tips for your business during challenging times.