Top Ways to Recession-Proof Your MEP Business
Written By Madeline Casey
If you learned anything from 2020, it’s that life can be unpredictable at times. Because of this, any path can quickly turn  into a risk, especially when running a business. That’s why it’s important to find ways to keep your business from recession's way and stand out in the midst of other businesses who may be struggling. 

  This article will cover the top ways to recession-proof your MEP business and potentially even grow your business during a period of recession.

A recession is a significant decline in economic activity, and is usually paired with negative gross domestic product, a surge in unemployment, and a decline in the stock market, among other factors. The Great Depression, the Great Recession of 2008, and most recently, the 2020 Recession are all examples of recession, and the negative impact it has on individuals and businesses alike. Unfortunately, it looks like signs are pointing to another recession right around the corner so businesses, beware.

Many businesses take a big hit when a recession comes around, and while some businesses are able to get back up after a rough season, other businesses don’t make it through a recession. But you may be surprised to know that some businesses even thrive during a recession. But how is this possible?

While you may not be able to predict when a recession is on the horizon, you can ensure that your MEP business is prepared in the event of a recession, with the advice in this article. 

  1. Review your business’s financial status.
One way to make sure your business survives, and even thrives during recession is to take a good look at your business’s financial status. Make sure you’re aware of how much money you have, as well as your company’s cash inflow and outline. It’s also important to look at your upcoming projects and the funds that will go towards them. Finally, while reviewing your business’s financial status, it will be helpful to look at where your suppliers are located. This is necessary in predicting which regions will easily fall into an economic crisis.   

  1. Have an action plan at hand. 
It’s important for any company to have an emergency plan because a recession can happen at any time. This plan should highlight how your business plans on acting in response to a financial crisis. 

  For example, an action plan may include ways to raise funds and/or cut costs in a financial crisis. With a plan of action, a company can be well-prepared in the event of unforeseen circumstances, such as a recession. It is also important to keep your company up-to-date on action plans. 

  1. Invest in insurance for your business. 
This one is a no-brainer, as it’s important to prepare your business for the unexpected. Insurance protects your assets, so why wouldn’t you invest in insurance for your business? Of course, nothing can fully protect your business from economic downfall, but with insurance, you can be confident that you’re doing all you can to protect your business assets.

  1. Be financially smart.
A company’s finances are heavily at risk when there is a threat of recession. This is why it’s so important to be financially smart. A few ways to be smart about your business’ finances is to keep operating costs low, have an emergency fund at hand, be wise about loans and financing, and negotiate wisely. In addition, part of being financially smart includes reducing and trying to eliminate debt so that you can aim to be debt-free until you really need it. 

  1. Monitor policy changes and economic projections. 
It’s important to know how upcoming changes in the economy will affect you and your business so you can further prepare for economic collapse. By keeping an eye out for changes in policy and staying up-to-date on current events, you can take the necessary steps to keep your business afloat in the midst of an economic crisis. 

  1. Know your target audience. 
Your customers are the people you will be serving and trying to retain in the midst of a recession; so it is important that you get to know them now. Rather than trying to gain new customers during an economic collapse, you’ll do yourself a favor if you take the time to learn the wants and needs of your target audience now, rather than later. This way, you will gain a loyal customer base now and be committed to retaining those customers in a recession. 

If you’re unsure of your target audience, take the time to seek out new business now before a recession hits. This will make it less stressful for your business during an economic downfall, because you will already know who you’re serving and how to serve them best. 

While you may not be able to predict economic collapse, adequately preparing your MEP business for a recession will serve you well. By preparing your business for changes to the economy, you can increase the chances of your business surviving, and even thriving, through a recession.   

Don’t forget to share this post!

Related Articles

Tips to Improve Safety On Site

Tips to Improve Safety On Site

Safety shouldn’t be something that management talks about, but doesn’t enforce. Jobsite safety should take precedence over every other aspect of your company, and if it is not a priority in your company, it needs to be. Making safety the most important thing not only helps to reduce costs, but it can also improve productivity on site. Because accidents lead to additional costs as well as delays in projects, when you make safety a priority, you lessen the chances of accidents occurring on site, and you save money in the process.

360 Sync Error Blog: Index was out of range

360 Sync Error Blog: Index was out of range

Usually, what happens when you see an “Index was out of range” error, it’s because (1) your root folder was deleted or changed names, (2) there is already a folder or a file name in the destination location & there can’t be 2 files or folders with the same name, (3) the file or folder name contains a restricted character (like < > ^ \ / ), or in some rare cases, (4) a folder was inadvertently uploaded as a file.

How To Build A Best In-Class Fab Shop

How To Build A Best In-Class Fab Shop

There are many advantages to improving your fab shop, one being efficiency. A fab shop should be a structured outlet designed to efficiently organize material and easily send it out to contractors on the field. Having a best in-class fab shop will create a more efficient system that helps your company. Another benefit of having a best in-class fab shop is safety. Because the fab shop is operating in an organized and efficient manner, it won’t be necessary to have as many people working in the shop. And as a result, Bauman explained that, “the less people you have on a jobsite, the safer it is.” To go along with this, improving your fab shop leads to more organization, which allows you to complete the same amount of work with less people and save money in the process.