390 - Recession-Proof Business: Your 2024 Get Rich Survival Guide

0:00Hey, are you ready to bring your dream business to life? Is it finally time to make the difference you were born to make good because we can help get started now at join bschool.com.

0:22If you're an entrepreneur who feels like you're falling behind, you are not alone and it's not your fault. Business is harder than it's been in years. Leads are more expensive, a lot of people's numbers are down, and customers are spending less. Sadly, it's probably going to get worse before it gets better. That's why in this video, I'm sharing three uncommon strategies that practically guarantee your business will thrive even in a down economy. You know, nobody's talking about the third one, but I think it's the most important. Here's the good news. Riches are made in recessions. Right now, there are so many hidden opportunities to get ahead as long as you know exactly where to look and what to do.

1:02Now, first, we need to understand that in business, there are two types of threats you need to be aware of. external threats and internal threats. External threats are things like inflation, wars, interest rates, stock market drops, climate events, and as always, politics. While of course, it's important to know what's happening in the world around you, this is not what you should be focusing on. Why? Because none of that is within your control. And in business, focusing on the things that you cannot control is a terrible use of your time and energy, especially in the midst of a sales slump, or recession, focusing on what you can't control.

1:39It makes you fearful, depressed, more likely to make stupid decisions and give up, which is why instead, smart and rich entrepreneurs get laser focused on internal threats. What are internal threats? Weaknesses and vulnerabilities that exist in your business right now that you can control. And listen up, internal threats, especially during tough times, those are both your biggest risks and your biggest opportunity for growth. They can either take you out or take you up. Let's dive in. Want to know the most dangerous number in business? One. Meaning, one source of leads, one source of revenue, or especially one team member who you could not function without.

2:22One person who, if they quit or get sick, can totally tank your business because you've got no SOPs, no backup help or access to their files. So for example, does one person have the keys to your technological kingdom? Heaven forbid, they get stuck somewhere and there's no internet and you are in the middle of a launch. Are you foobard? Or worse, is there a contractor that has you by the ball? Somebody who just might say, oh, by the way, my rates are tripling next week. Just wanted you to know I've been there and it's not fun. You know, the Navy SEALs say two is one and one is none. Same is true in your business.

3:00Bottom line, you do have single points of failure in your business right now. And if you don't lessen those risks, at some point, you're going to get blindsided. You're going to either lose money, and if it all goes down at that worst possible moment, it could take you and your business out for good. Do not let that happen. Here's your action step. I want you to make a list of the top five things that keep you up at night about your business. Is it one source of leads? Is it too much reliance on one marketing channel? Or is there anyone on your team, either internally or externally, who has you by the balls?

3:36Write it down. Then figure out what can you do right now to protect yourself against those risks. Pop quiz. Why does a bear fatten itself up before winter? Because it needs extra resources when supplies are scarce. You know, we've all heard the saying that cash is king, and during a cold economic winter, which is what we're in, It's more true than ever. Meaning, for small business owners like us, this is no time to run out of cash. Look, I know money doesn't solve every problem, but let's be honest, it solves a lot. So if you don't have a safety net in cash, now is the time to stack that cheddar.

4:15How do you know it's enough? Ask yourself. If all your revenue stopped today, do you have enough cash on hand to run the business for the next six months? Could you handle payroll and overhead and just keep the lights on. If not, aim for that. Personally, I like to keep about a year of operating expenses in cash on hand at all times so that no matter what surprises might be around the corner and there's always another one, we can weather that storm. I'm not the only one. From the day he started Microsoft, Bill Gates always insisted on having enough cash in the bank to keep the company alive for 12 months with no revenue coming in.

4:53If you're wondering, well, how the hell do I make this happen? Use what I call the make more, save more method. Step one is to make more. Challenge yourself to make more money now by making better, more irresistible offers, especially to existing customers. Why then? Because existing customers already know, like, and trust you. Plus, there's way more profit margin with existing rather than new customers because you do not need to factor in customer acquisition costs. And there's always a certain percentage of everyone's audience, including yours, right now that would love to give you more money if only you would create something that solves more of their problems.

5:33Now, of course, there's endless ways to make more money in any business, but that one strategy can instantly multiply your revenue and your profit faster than almost any other. Now, step two in the method is save more, meaning save more of the money that you're already making. You know, a good friend of mine, she's been in business for about 15 years. Recently, she did this big financial audit because she felt like her overhead costs were starting to get out of control. So it turns out that when they went through all of her software costs, all of the tech, all of the outside vendor costs with a fine-tooth comb, she found over$100 ,000 a year in savings like that.

6:11Now, you multiply that by five years, that's a half milli. On our team, we like to say, saving money is like making money. So we actually comb through our credit card statements and invoices every month. We're always looking for ways to trim costs and cut the bloat. We run a lean, mean, money-making machine, and you can do the same. Here's your action step. Go look at your numbers. How much cash do you have stacked? Do you have enough runway if things go bonker pants, either in your business specifically or in the world at large, to get back on your feet? If not, how can you use the make more, save more method to get and keep more money?

6:47I am telling you, the compounding effect of both making more and saving more, it quickly snowballs into a more resilient business and much bigger bottom line. Now, this last threat is the one most people overlook often to their demise. A few years back, my town got hit by a big snowstorm. The roads were a mess, the power was down, and the temperature was dropping fast. My neighbor came by with a shovel to help us clear our driveway. Then another called a local guy with a plow truck. And then a few of us went down the street to check on the older couple to make sure that they were okay. That's because when things get tough, the best way to ensure that you not only survive but you thrive is to never go at it alone.

7:27And I know you know this. The key to winning in business is staying close to the right people. So you might wonder, well, how do I find the right people? Let's break this down. First, you got to up-level your inputs. What does that mean? As they say, garbage in, garbage out. Who do you get your information from on how to grow your business? Is it some rando on TikTok? Are you listening to people who talk a big game, but secretly they're broke and scared? Or are you learning from someone with a solid proven track record over time? Who's helping you stay inspired? Who's in your ear every day? Who's helping you stay focused on the things that you can control, not the things that you can't?

8:03Whether you like this or not, 80 % of your success is your psychology. No business can ever outgrow or outperform its owner's mindset. That's why you gotta up-level your inputs. Be really mindful about where you're getting your information and your inspiration. I'm telling you, you can't afford to get this wrong. Do whatever it takes to get around people who help you think better and perform better. Next, I want you to up-level your business buddies. So anytime I hit an obstacle or I just get sucker punched in my business, I send a text or I make a call. Hey, you know anybody great at building funnels?

8:39Hey, who are you using for ads right now? And I also get a lot of those calls all the time. My friends who want my take on their copy or their pricing or a new offer. That's because me and my business buddies, we help each other out, right? And if you don't think that your network directly affects how much money you make, how fast you grow and how your business performs, you're fooling yourself. Do not be the dead lone wolf. Go talk with people. Go to events, sign up for courses, get better business buds. Now, if you want to hang with me and my crew, join B-School. We're constantly sharing resources and making sure that our folks are ahead of the curve.

9:19And you can learn more at joinbschool.com. Last but certainly not least, up level and amp up your connection with customers. Now is really the time to increase and improve your customer communication. Why is that? Because people are cutting back. So you got to make yourself more essential to their lives, not less. How? Here are your action steps. Ask yourself, how can you shower your customers with some extra perks right now? How can you show them even more love and care and attention? Maybe it's a special insider event or an exclusive deal that's only available to them. Ask yourself, what are some innovative ways that you can position yourself as a must-have part of their lives?

10:00Bottom line, now is the time to get creative and get even closer to your customers. Because when times are tough, people do cut back. And it's totally within your control to make yourself so invaluable, they refuse to cut back on you. Whatever you do, during these times, do not give up. Do not go at this alone. You've worked so hard to get where you are. Don't let that slip. Take action now to protect yourself against current and future risks. Above all, stay on your game and keep going for your dreams, because the world really does need that very special gift that only you have.