International Webinar 2022 - Recession Proof business Strategies for 2023 – Part 9

No one knows when the next recession will hit, but business leaders know that a decade of the nation's good times can't last forever. Experts cite different potential triggers such as a serious US-China rift, an interest rate misstep by the Federal Reserve, rising corporate debt levels and a ballooning federal deficit. Any factor can push an economy into a recession — loosely defined as a significant reduction in economic activity lasting more than a few months.


Whatever the cause, a recession is sure to pose a bottom line challenge. Can the pain be reduced? Yes, if you took certain steps to retool your operations before the slowdown occurred. And the time to start the move, experts say, is now.


Early steps to retooling your business can yield rich dividends in the form of stronger profits long before the recession actually hits. And once the economic downturn really begins, your sleek, mean machine can beat the competition.


Selling more into your existing market–and growing it–doesn't need to be expensive. You may be able to find new ways to get more out of your current organizational structure. Furthermore, rationalizing your current resources often translates into cost reductions.


Here's another way to increase capacity: Capitalizing on the digital revolution. A recent Harvard Business Review study found that successful companies tend to use funds from reduced operating budgets to invest in productivity-boosting technologies.


A recession can throw a company's normal earnings rhythm into a tailspin. So businesses should start monitoring more closely what comes in and goes out. Does the turn slow down? Is your cash locked up for a longer time?


When a good customer starts slowing down their payments, you want to respond in a way that avoids alienating them. Keeping on top of problems will require good communication skills. So it's best to call and ask the customer if there is a problem. If a customer is having temporary issues, your loyalty to them could pay off. If you help customers now, they will stay with you forever. This is where customer loyalty will be built.


Cash is a two-way street. Monitor how fast money is flowing out as well as in. The goal is to stay liquid. Don't just rely on hindsight financial reports, it's also a good idea to devise and access expected cash budgets.


The above material was presented by a presenter from Malaysia in an international webinar held by STEKOM University in collaboration with Universities from Malaysia, PRC and various other parties. The title of the presentation brought by the presenter from Malaysia was "Recession-proof business strategies 2023: Malaysia's Economy Perspective." The presenter's name is Hafizah Abdul Rahim who is a senior lecturer and research fellow at the center of excellence for social innovation and sustainability, faculty of business and communication at Universiti Malaysia Perlis.


This international webinar activity is part of the implementation of STEKOM University's commitment to increase various international activities. This was done in order to realize the vision to become an international-class university. Various international activities carried out by STEKOM University continue from year to year. There are international activities that are sustainable and there are also some international activities that are not sustainable. All types of international activities are accommodated and regulated by the International department of STEKOM University.