A recession is forecast for 2023.
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Businesses are preparing for a likely recession in 2023.
Insider spoke to four business leaders who went through the last big recession between 2007 and 2009.
They shared the struggles they faced during the recession and tips for overcoming the hard times.
Leading executives, investors, and analysts have warned an economic recession could be right around the corner, meaning many businesses are set to struggle financially in the coming year.
For some companies, it’s not the first financial crisis they’ve experienced. The Great Recession, which lasted from December 2007 to June 2009, was one of the worst economic crises in history, causing high rates of unemployment and falling household income.
Insider spoke to a range of businesses about the challenges they faced during that recession and what they’d recommend to other firms grappling with financial struggles.
“Don’t get stuck in your ways”
Bala Croman, owner of The Chocolate Cellar.
Balla Croman opened The Chocolate Cellar in 2005 in Liverpool, northern England. When the economic downturn hit her business in 2008, she said she was still very new to the business and was “often worried” about overcoming the challenges.
“It was really difficult to get our wholesale and corporate customers to pay us in good time,” Croman told Insider. “Yet we were being pushed by suppliers for early payment as they were all really nervous due to the companies that were going into liquidation at the time.”
Croman said she had to lay off some employees and give up the physical store temporarily to reduce overheads.
During this time, Croman promoted The Chocolate Cellar at farmers’ markets, food festivals, and pop-up stalls at other events. She also asked the company’s bank, suppliers, and landlord for flexibility.
Croman’s tip for businesses ahead of a likely recession was: “Don’t get stuck in your ways.”
She said it was important for companies to be flexible and prepare to change the way they work. Businesses should focus on what is profitable and “drop things that are not serving you best.”
“Cut deep the first time”
Amy Spurling, former CFO of EXOS
From 2008 to 2014, Amy Spurling was the chief financial officer for Arizona-headquartered health and wellness firm EXOS Athletes Performance.
Spurling told Insider that when the recession hit EXOS in 2008, some large contracts with clients failed to go through and the company made “horribly painful” headcount cuts.
“I constantly worried about how to effectively walk the balance …read more
Source:: Business Insider