While the subject is debated as to whether we will either go into a recession or sidestep it altogether, it is clear we are in one off the most complex economies and markets that we have seen in a long time. Mr. Dimon believes we have a 65% chance of going into a full blown recession primarily based on the highest inflation in 40 years which will require a significant response by the Fed, the continued effects of supply chain interruptions and the Ukraine war.
The question for all service professionals (lawyers, accountants, bankers, consultants, RE brokers, etc…) who provide professional services – are you prepared to withstand a recession and do you have the necessary parts in play to not only survive but to thrive?
Having worked with professionals for over 25 years, I have seen what occurs when a recession hits and the impact it has on the professionals who are unprepared and depend on referrals from other professionals for the preponderance of their business.
Typically, as the pie for referrals shrinks due to a contracting economy, these same professionals significantly step up their networking activities. Why? The pipeline is drying up and there is not a plan in place to fill it other than to put themselves out there networking as the proverbial “fly paper” to see if they can get anything to stick.
None of us has a crystal ball and projecting when a recession will occur is difficult at best. But, we are definitely seeing some telling signs that it is approaching as Mr. Dimon suggests. There is ample time to prepare yourself and your business so that you continue to thrive in your specialty area.
Here are 8 smart ways to recession-proof your service business:
1. Clearly articulate the utility of your business
You must be able to clearly and concisely explain to others what SERVICE you provide and you who best serve. We all want to work with people who know where they are going and how they will get there. There is no time for ambiguity.
2. Communicate a good value proposition
3. Be Your Authentic Self
4. Do not just focus on networking
5. It is important to be able to differentiate yourself
6. It is about the quality of your relationships not the quantity of acquaintances
7. Have a plan in place
Those who go into a recession with no plan other than winging it are using hope as their primary strategy. Many people begin a new year by telling themselves they need to get out and repeat what they did last year to see if they can get some referrals. That is not a plan. One of the key benefits of having a plan is that it gives you a direction and blueprint for the results you want to achieve. It is particularly helpful in a recession since it will help you focus on the clients and income you want. By following your plan you will not waste time doing things that won’t get you where you want to be.
8. A bonafide distribution system is a must
You are the captain of your ship….
Economic cycles come and go. For the last 10 years we have enjoyed a level of prosperity and for most professionals referrals have been plenty. Now that It appears that the economy may very well go into a recession, success can still be yours if you have a plan and execute effectively.
To help you, we have developed a mobile app called “Relpip” that will help you create the referral partnerships you need in a recessionary environment. It is based on the very successful “ProGrowth Relationship System” that has helped professionals build winning businesses over the last 25 years.
Our goal is to build a unique community of professionals throughout the U.S. who are like you and understand the benefits of a referral partnership over networking acquaintances. Please checkout our informational site at https://relpip.com and then download the Relpip app in the Apple App Store or the Google play store. Your first referral partnership is within your reach!