Yes, there may be another recession coming (or already has, according to some). But it's not, in itself, a bad thing.

There are three characteristics of dieting, and each one—while unpleasant in the short term—have beneficial outcomes in the long run.

Firstly, diets focus on cutting excess (sweets, sugars, and fats), not the necessities.

There are two kinds of excess in the business world. The first are luxuries, such as the fancy events, entertainments, and excessive marketing. (If you run an events or marketing firm, ask yourself: how do we make ourselves indispensable to our clients?) 

The second excess is businesses that are unscrupulous, fly-by-night, snake oil salesmen types. These are the first ‘businesses’ to shut down during a recession, and it’s their exits that typically make the number of “failed” businesses so high. Don’t let it scare you…these guys were never going to last anyways.

Secondly, diets end. They often don’t last forever (even though it sometimes feels like it!)…and neither do recessions. Even if it isn’t the best or easiest time, focus on the value you’re delivering. 

In every industry, some firms will make it through. You need to focus on what will carry you to the other side, such as faithful team members, understanding suppliers and good cash flow (and yes, managing cash flow is crucial. Speak to your accountant about contingencies).

Lastly, the situation at the end of a diet is better than the situation at the start. Diets end when the body is healthier. Recessions end when the economy is healthier. 

Of course, it’s better always to maintain good health, so we don’t need diets, but it doesn’t usually happen that way. There will always be pollutants to a healthy system, and diets and recessions will be necessary to flush them out.

Your primary focus should be on building your firm in a way that it can weather the storms, for there will be storms. It starts with getting the basics in place, allowing you to run your business from a position of strength and control, rather than firefighting problems. 

Then you build the money, not just revenue but profitability as well as predictable cash flow. Then comes the sustainability of both…and that’s all there is to it. 

Simple? Yes. Easy? Not always, or else everyone would do it..