William Sassman Explains How to Grow a Business During Recession

Finance expert and advisor William Sassman believes that economic downturn is an opportunity for the business savvy. Just because everyone else is focused on the negative doesn’t mean that you cannot be among the others leveraging untapped resources to make improvements.

In fact, many successful entrepreneurs determined to grow their business during recession.

Defining Terms: What is a Recession?

“Economists officially define a recession as two consecutive quarters of negative growth in the gross domestic product (GDP)” (Investopedia).

The more practical definition of a recession is widespread:

1. Decrease in exposable income
2. Higher unemployment
3. Production slow downs
4. Increased financial anxiety for businesses and consumers

For business owners, recessions may not mean bankruptcy, but it certainly detracts from an optimistic outlook. As such, many businesses overreact to recessions with major layoffs and defensive strategies.

Critical Actions that Strengthen a Business During Recession

Dr. William Sassman says, “Don’t act fast, if you hear part of the puzzle or part of the story, wait until you can see the whole picture before you act on it.”

A national or worldwide recession doesn’t have to mean the end of one’s business. It’s only part of the puzzle. Having a plan for if a recession occurs is important to ensure that you do not fall behind or ruin your business.

Don’t Delay the Inevitable.

During economic growth, entrepreneurs frequently take risks that they wouldn’t normally take to increase profit margins.

Once a recession hits, smart decisions makers can tell which projects – product launches, marketing initiatives, etc. – are doomed to fail in the new business climate. They must be able to let go of these unprofitable ventures, regardless of what they are, so that more time and resources are available to make agile decisions about what can be successful.

The concept of “failing fast” is not mantra of self-destruction. This concept helps smart businesses rebound and recalibrate. Too many businesses get so caught up in saving failing projects that they miss amazing opportunities opening up right in front of them.

It’s All About Efficient Productivity.

During periods of fast growth, it is not always top priority to be as efficient as possible. However, when an entrepreneur enters a period of recession, they see it as a clear signal to “go lean.”

Thankfully, new productivity technology is available in every possible industry. Replacing spreadsheets and wasted labor with robust software platforms can speed up production and lower costs.

Another savvy technique by businesses that grow during recession is to cut out as many “middlemen” as possible. Purchasing directly from the source can save a company thousands of dollars.

“Fire fast but hire slow.”

The businesses best able to grow during a recession are the ones that hire carefully. William Sassman supports the slogan, “Fire fast, but hire slow.” If you have a problematic employee, it is best to let them go quickly and take time to hire the best replacement.

Proactive, hardworking employees allow an organization to do more with less. William Sassman concludes that high performers also keep the company on the cutting edge of their industry.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes.