Four steps to prepare your business for a recession: build a contingency plan before cash dries up, shift to wartime leadership using Ben Horowitz's framework, change marketing from ambitious to security-focused messaging, and view the downturn as a chance to outmaneuver struggling competitors.
Here's the 4 things that I would do if I were preparing for a recession. One is I would make my plan now. All of a sudden your business isn't making money and you're like, shit, what do I do? In that state, you're so emotional that you're not typically making good decisions. The second thing is making the message about what is wartime and what is peacetime. Ben Horowitz has a great book, The Hard Thing About Hard Things, where he talks about what a peacetime versus a wartime leader is. I would read that section and I would make sure I was very transparent with my team about making those changes and what we're all gonna do differently. I would actually adjust my marketing. Switching from goal-oriented marketing to preservation-based marketing. When people are in a state of fear, they're not thinking about audacious goals. Instead, they're thinking about, dude, I just need to make sure I make rent next month. And then the last thing, there is always a way for you to win despite what's happening around you. You can't blame the recession. Instead, you need to look at it as your strategic advantage. How will I win when everybody else is losing?
