5 ways to protect your business from a recession

The opinions expressed by entrepreneurs contributors are their own.

Our current economic situation is stressful. With the word "recession" floating all over the news, it seems like we're in a kind of "are we going or not?" debate between those who think a recession is inevitable, those who think it can be avoided and those who think it can go both ways. Since it is difficult for financial analysts to know what will happen, they have little hope of being able to determine precisely what economic turn the country will take and when. The best option is to prepare our companies.

Some companies are almost recession proof simply by what they make or sell. These businesses meet basic needs: food, clothing, housing, health care and public services. Whether in any of these areas or not, the key thing to remember is that recession proofing your business benefits you whether or not the recession hits.

So how do you do it? Here are some moves to perform.

Related: Fear of a Recession? Follow these 5 tips for a recession-proof business

Think about the products you could add to your range at a lower cost. If you already make soaps and bath bombs, consider adding products like salt scrubs or body washes. Consider expanding baby blankets if you specialize in knitted baby hats.

Think about your market. Is it possible to reach customers in different ways? Consider selling your products through a major online retailer like , or . See if the local grocery store will sell your soaps or if that cute baby boutique will sell your hats. Determine if there are any customer populations that you are not currently targeting. Consider how customers access your products. Add delivery, business-to-business, bulk pickup, or even subscription services.

Finally, you may be able to diversify your offers by adding new prices. If you usually only make leather bags and boots, consider offering a similar range of more affordable faux leather options (which might appeal to vegan customers - a whole new market!) alpaca, consider adding a synthetic version of the same style to catch the customer who likes your look but has a tighter look.

Related: How to Diversify Your Business Interests

Even if you have an accountant taking care of your finances, now is the time to sit down with your statements and know your cash flow. Consult your documents month by month. Based on your historical expenses, you should be able to create a realistic monthly budget. Develop a spending plan taking into account the worst-case scenarios based on what you offer. Check your cash flow every month and adjust it if necessary.

When looking at your budget, think about the purchases you're likely to make over the next 18 months (of course, the average recession is only 11 months, but it can last up to a year and a half ). expenses such as new office space or new furniture. At the same time, take a look at your purchases and ad costs and identify which ones are giving you the biggest returns. Drop those that don't pay off. You must continue to invest in your business through advertising, even during a recession. Going into the background when trying to save is a surefire way to run into issues. In addition to reviewing your budget and expenses, take the time to renegotiate with your suppliers, especially if it's been a while since you've done so.

Finally, consider preparing to open a line of credit or apply for a loan. You may never need them, but forming the documents you need takes time, so go ahead and grab them now. Make sure you have the most up-to-date financials, references, organizational charts and resumes. Do prospect research to identify possible grants related to your business or browse loans with the best interest rate...